Now is a great time to buy. No, really!
Okay buyers, I get it. You’re nervous and everyone and their dog is telling you the sky is going to fall. Here is the thing. In Vancouver where the same buyer tax was put into place it only took about six months for the market to rebound. This month, prices were down for Toronto 6.2% with an average of $863,910 compared to last month’s price average of $920,791. But they were still up by 29% year over year. Active listings were up by 42,9% compared to this time last year so there is so much opportunity right now. You know how Warren Buffet says “be greedy when others are fearful”? This market is a prime example. Buffet buying shares in the Home Capital Group today is also a pretty good indication of his belief in the strength of the Canadian housing market. If you were looking for a home this spring you may have become disheartened, I understand, but there is so much more available now. Bidding wars with 18 buyers showing up at the table are pretty much a thing of the past right now and we really don’t know what the fall will bring. We can gather as much data as we can and keep our finger on the pulse on the market but we still have no crystal ball. All we have are the facts, lots of facts, lots and lots of facts. Interest rates are still low. If you are looking to upgrade your place, you might get less on your place, but you’ll also pay less on your new place.
Bottom line? Toronto homes are still a great long term investment no matter what happens and now is a great time to buy with more inventory than has been available for a while.
PS – It’s still a seller’s market out there with only 2 months before all inventory is sold if nothing else comes to market so offering 30% less than asking probably isn’t going to work out for you. You take a real gamble on a seller being desperate enough to sell and it may mean you miss out on a place you love. There are signs you can look for that will tell you if someone is desperate to sell and a good Realtor can help you spot them. Hmmm, I feel another blog coming on.
PPS – I will use any chance I get to use Doctor Who related images in my blog. Sorry. Not really.