What Does the Future Hold?

Nothing spectacular or unexpected in the August real estate market statistics. 4,975 homes sold, and 22,653 homes available for sale, which means that only 1 in 4 homes is selling. This increased inventory has impacted the length of time that a well-priced home(within 5% of market value) sells, 28 days, up from 20 days a year ago. Despite these factors the average price for homes sold in the GTA stand at $1,121,832 down from $1,126,258 ($4,426 or 0.39%). In other words, on average, prices have remained stable. Yes, some areas and price ranges have been more greatly impacted, but overall, prices are relatively stable as we enter the fall market.

The big question is,” what does the future hold?”. The outlook has not changed! Huge demand, lack of inventory created by fewer housing starts, improved economy as borrowing rates start to fall. With September’s rate drop, 5-year mortgages are being offered at 4.19%! That will certainly bring buyers of off the sidelines and purchasing homes.

Great opportunities exist in the market today, whether it be in price or as important, choice! Buyers today have a choice of which home to buy, something that was not available a couple of years ago, and something which will disappear once the buying surge restarts in full force.

The government keeps talking about affordable housing, while at the same time increasing development charges and taxes on builders which will ultimately be passed on to consumers. It’s estimated that 25% of the cost of new construction condominiums is due to permits and taxation! As we have seen in the last 2 years, if the builders do not believe they can get the prices they want, they just don’t build! With housing starts down by one half from normal levels (which did not keep up to new demand),there is only one way for prices to go.

If you are considering upgrading your home,buying an investment property or perhaps a condominium for your kids, now might be a good time to explore those opportunities.

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

Have a great September,

Your Friend in Real Estate,
Howard

PS: I am never too busy for your referrals.