We are almost through our first month of 2013, woohoo! How did you all make out? Did you get suckered into the January blues? Well, let me tell you that there’s nothing blue happening in the Toronto real estate market as the first set of 2013 numbers were released. Let’s take a brief look at the numbers during the first 14 days of January 2013:
- sales were up 2.4% when compared to the same time last year
- the low rise segment (homes) experienced the strongest price growth
- the average selling price in the GTA was…..$459,728, up 4% on a year over year basis
- the average selling price in the 416 area was…..$464,228, a slight increase when compared to the same time last year
So what does this all mean? While it’s still too early to tell what kind of real estate market Toronto will have for the remaining of the year, buyers market vs. sellers market, what I can say is that there will most definitely not be a housing crash of any sorts. Therefore we can all chill out and not succumb to the glorified media headlines.
Are you sitting on the sidelines waiting for prices to plummet? Then you’ve probably been sitting on the sidelines for the last 2 years, right? Come on, admit it! In the last 2 years, all we’ve seen is prices rise and stiff competition for single family homes as buyers are choosing not only to buy homes, but also lifestyles and neighbourhoods. Unfortunately not much will change as condos get smaller and lack of new homes being built in the core continue. Take advantage of the low interest rates, lock in something for the next 5 years as rates WILL rise, it’s only a matter of time. Maybe you’re a first time buyer and condos are your main choice, waiting for that so called condo bubble to burst. I’m sorry to say, but it’s far from bursting. This year, we’ve already seen bidding wars on condos, yes you read that right! With first time buyers accounting for 30% of purchases over the next 2 years, there will be lot’s of demand to fill those units. And don’t forget the investors and baby boomers, they love condos too! My piece of advice if you’re going down the condo route, buy a condo in a great location, with a functional floor plan and low maintenance fees, these are the type of condos seeing all the action this year. It’s all about getting educated and making a wise investment, otherwise you’ll be sitting on the sidelines for the next 2 years, watching others get ahead. If that’s the case, then maybe real estate is not your game.
Yes the Toronto Land Transfer Tax sucks, but unfortunately your family is growing and you’re probably scratching your head thinking were am I going to fit everyone. With the steady rise in housing prices, lack of good inventory and high demand, why not sell your home and upgrade, what are you waiting for? With the equity gain and low interest rates, you can have a solid down payment and low monthly mortgage costs. The land transfer tax will get absorbed over time, does that cost outweigh having more space for your family to grow and being happy? I think you probably know the answer to that question. What about all of you with condos looking to up size, I have some food for thought too! Why not place it on the market for sale and lease. Toronto is still experiencing a hot lease market like we saw towards the end of 2012. There’s lots of tenants out there willing to pay high prices for downtown conveniences. Worst comes to worst if you can’t sell your condo, refinance it, get a renter in there to cover your costs and move on with cash in hand for your next purchase. You’ve worked hard to build that equity, so why not use it and let your money work for you.
Anyway, those are my 2 cents for what it’s worth. Care to discuss this any further or have any questions….leave a comment below, I’m always happy to chat!
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