Buying Season…A Limited Time Offer!

I hope you are enjoying the summer and getting a chance to see the Olympics, Canada has been doing great and making us all proud!

The real estate market was as expected, 5,391 homes sold, a little bit more (3.3%) than last year, and as of July 30, the average sales price stands at $1,127,525, up $1,261 (.1%) over the start of the year. The20-30% drop in home prices bandied about has not occurred. Everyone was concerned that the higher interest rates would cause more foreclosures, however the banks have been flexible in handling renewals, allowing 30-yearamortization schedules, thus lowering the monthly repayment schedules. In some cases, lending institutions have allowed negative repayment schedules where the principle increases slightly each month instead of being paid off. These flexibilities have allowed homeowners to avoid the necessity of selling their homes and have provided stability in the market.

Another positive market influence in July was a small reduction in the borrowing rates, a trend which will continue over the next 18 months.

The most impactful number in July was the listing inventory of 23,877 homes for sale in the GTA. That means the average buyer has a choice of 4 homes to choose from, not great, but far better than no choice, circumstances we have become familiar with over the last several years.BUT…. with immigration up and new home starts down, this situation will change very quickly. Even in today’s market, well priced homes are selling at 99% of the listed price in 24 days.  

Some sectors of the market, namely condominiums are not doing as well as the average. There has been a lot of speculation on pre-construction condominiums, and those who gambled on  to sell at a profit are instead being forced to sell at a loss. This represents an opportunity in the market for those investors who are prepared to hold and rent as rents are high and likely to rise due to a lack of supply.

Don’t forget as the real estate market improves and prices increase by 10%, a $1,000,000 home goes up $100,000 while a $1,500,000 home goes up $150,000. If you can afford to, now is a great opportunity to upgrade your home while there is a good choice of homes available for sale!

Contact me if you have any questions, I would love to chat!

Have a great August!

Your Friend in Real Estate,
Howard

PS: I am never too busy for your referrals.