After months of lagging sales the most recent “Market Watch” report from TREB points to signs of an awakening! April sales were up year over year by almost 17% translating to over 2000 additional sales as compared to last year. Even better news is that there has been an 8% increase in new listings as compared to last year.
Don’t get too excited though because we’re still selling more than we’re listing and as such average prices have risen by just shy of 2%. Not the insanity of days gone by but definitely an upward trajectory. So why are prices going up if inventory levels are higher? Unfortunately it’s the same old story – there are simply more buyers than there are sellers and we continue to have an inventory shortage.
Sale prices in the downtown market are all over the place – some homes are selling for around the list price while others are continuing to sell for well over list in multiple offers. It really depends on the agent and how they’re choosing to market the property. Pricing a property is an art and listing at an artificially low price can often backfire. Careful consideration is needed to arrive at the right price and strategy and there are numerous variables that come into play.
Bidding wars are particularly prevalent in east end areas such as Leslieville, Riverdale and beyond but even in other areas throughout the central core, good homes in the $1m-2m range are selling for over list.
So is it a good time to buy? A good time to sell? It really all depends on your circumstances.
Are you living in a rental condo, both well employed and planning on having a baby? With interest rates south of 3%, The timing couldn’t be better for you.
But if you’re still struggling with coming up with enough of a down payment to afford to buy what you want and have been affected by the stress test mortgage guidelines set into place last year, then don’t give-up. Take a look at the video below, put on your thinking cap and get creative!
Sellers, as long as you have somewhere to go whether it’s to downsize or rent, then you’ll do very well. Prices are still expensive on the buy side so if it’s a lateral move, you might want to think twice about selling. Yes you have super low rates in your corner but until the government listens to the realtor community and does something about the Land Transfer Tax, think about pulling out some equity from your home and buying a small condo as an investment instead.
The condo market is buoyant and prices have increased by 5.8% year over year. There’s no shortage of people wanting to live in the downtown core who may not have the desire or ability to buy in the city.
Owning an investment property is the best way to diversify your portfolio and you can pretty much rest assured that a cute little condo near transit is going to increase in value and always be highly desirable in terms of rentability.
Even if you net out just a small profit or break even for the first little while, it’s ok because your equity will grow on the long term and you’ll be increasing your future gains just by simply paying down the mortgage. This is why we say that mortgage debt is “good debt” because it forces you to save money you may not otherwise be saving,
I encourage you to use me as your real estate resource. I’m always up for conversing about the Toronto market and how I can help you achieve your dreams whether it’s to buy your first home or to help you leverage your existing property portfolio.
Leave a comment below OR Email / Call me at firstname.lastname@example.org
Remember … Not All Realtors Are Created Equal 🙂
Source: TREB Market Watch