REAL ESTATE MARKET UPDATE NOVEMBER 2017 ~ TORONTO/GTA
Historically October is the busiest month of the Fall market and once again this year was no exception. October’s 7,118 sales represented an above-average increase between September and October of almost 12%, a more pronounced increase than usual. That points to stronger Fall market conditions, not unexpected given the government’s announcement of stricter mortgage qualifications starting January1st , 2018.
The change in mortgage qualifications lowers the amount of mortgage that buyers will be able to get, thereby reducing how much you can spend on your home purchase.
This has created an urgency for buyers to buy before the January 1st deadline, hence the increase in sales activity. Those buyers that would have normally bought in January/February are buying now, and I expect lower than normal sales at the start of the year. Sales at the start of 2018 will be impacted as some people will wait to see what happens. (Some of my Sellers are waiting for the Spring Market as they believe prices will go up and some buyers are waiting for the Spring market because they believe the prices will go down!)
Your home is not a business investment and should not be treated as one. If you buy and sell in the same market there’s little impact on prices going up or down or market conditions changing. If you’re considering selling and not buying then I would consider doing it right now as the demand is strong in some pockets - let's talk about your area first. If you are a buyer, now is the time to buy because of the mortgage changes.
While home sale activity in the Toronto area goes up and down depending on confidence in the real estate market, none of the factors affecting Toronto prices have changed. We are in a boom economy, low interest rates, huge immigration, and ultimately Toronto is cheap compared to other cities. There is no doubt that prices will continue to rise over time.
While this is an overview of the market, each situation is different and based on your needs and circumstances I may recommend a different strategy for you. Give me a call, let’s talk. I want to give you the best advice possible and make sure that you’re well looked after!
Your friend in real estate,
Suzana ( Sue ) Davies
Sales Representative ®
RE/MAX Realtron Realty Inc., Brokerage*
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