Canada’s current real estate forecast has placed numbers off the charts.
Recent reports have placed Canada’s real estate numbers in new territories. With average home prices over $508,000, potential buyers are seeing numbers that are approximately 16 percent higher than prices in 2015.
Another free home report details that 45,137 homes have been sold in the month of March 2016, which has set a new exchange record. Sales are on the rise and these numbers are especially true in both Vancouver and Toronto Real Estate, which are also where the highest prices are found.
According to Gregory Klump of the Canadian Real Estate Association, the shortage of active listings in “two of the hottest markets in Canada [means] more price gains going forward.” The housing boom in Vancouver and Toronto Real Estate areas have increased numbers 13 percent and that’s with a shortage in MLS Listing numbers.
While sales are at record high, the most shocking part may be actual listed prices. Listing prices are up 12 percent in both home and Toronto condo prices. In Vancouver, listing prices are up 23 percent from last year.
According to Homula real estate updates in today’s economy, those with homes for sale are able to list their dwellings without having to put in much of the groundwork. This means that many new buyers are purchasing homes that haven’t had the general cosmetic work that is usually expected when purchasing a home.
This new movement will have buyers asking questions such as: “What home improvements will I have to make?” “Who pays land transfer tax?” and “Is it really worth it for the home I want?”
Tom Leslie, a recent homebuyer, adds, “We had to clean it ourselves. We had to paint it ourselves. We had to haul a bunch of junk out of the house, but in the end, it was worth it because we actually got the place.” As prices soar, new homebuyers are even being forced to pay a premium for items such as a garage or backyard.
For Leslie, doing the work, agreeing to an hour commute, and paying $650,000 for the home was worth it in the end. “To feel like we were doing the seller a favor was crazy,” he adds with a smile, thrilled to be in his new home.
Debt Acceptance and the Trickle Effect
To give you a specific idea of the price increase in simple terms, one example includes a home that sold for $295,000 in 2005. That same home, after experiencing some basic upgrades, has been listed for $999,000 in 2016. If that’s not enough, the price actually sold for $1.6 million, to the highest of the 13 bidders.
Many feel that homes in Vancouver and Toronto are listed in a way that normal Canadian workers can no longer afford to live in those areas. With outlandish conditions and inflated prices, credit experts feel that the nation’s mindset has changed in a way that the majority of people have accepted having massive debt.
“Let’s face it—people are just looking at the carrying cost,” comments Laurie Campbell, a Canadian Credit Expert. “They aren’t looking at the long-term investment that their house really is, where interest rates may continue to rise.
High mortgages generally mean additional debts. “It’s the trickle effect,” adds Campbell. “It’s when people find themselves in other types of debt, such as credit card debt, lines of credit, overdrafts and more.” These figures have many buyers seeking the aid of Toronto Mortgage Brokers or Toronto Real Estate Lawyers.
However, the most important aspect of this market is that forecasters believe this trend will continue. Global News’ Jennifer Tryon reports, “If an owner can hold onto their house, then it’s likely to be worth even more.”
The Positive Side of the Increase
Homula news forecasts like this one can often leave viewers with a bitter taste in their mouths, depending on which side of the discussion they find themselves. For homeowners in Toronto and Vancouver, these record highs are quite positive. For those who wish to purchase, this increase can appear negative.
The final moments of Tryon’s report are perhaps the most influential of the entire piece: Those who forecast the future of the market are predicting that this trend will only continue to increase, meaning it’s actually the best time to buy.
Much like the stock market, buyers do not have a crystal ball to predict the future, but with every expert leaning in the direction of further increase, it’s safe to say that areas such as Ontario real estate pricing are somewhat more predictable.
These reports will continue to speak about rising prices and stagnant wages, disregarding the fact that this seemingly bad news is positive for those who look at buying as an investment. These recorded conditions point to the best time to buy.
For those individuals who have some options when it comes to choosing a market, consider buying in cities where employment is continuing to grow. The local economic health is always a solid basis for determining supply and demand. Overall, we are at a point where economic growth is possible once again.
Now is the Perfect Time to Buy
As a new buyer, the market increase may seem threatening, but it’s important to remember that you are joining the increase, not fighting it.
For those who can buy now, this means more value in the near future. In addition to the rising tide that raises all ships, another benefit of purchasing a home in the upcoming months is the seasonal aspect.
Most people sell their homes in the spring and summer because they’ve always been told that that is the best time to sell. However, as the market is changing, not everyone is still on this seasonal trend.
Realtor Amanda Howard reports that spring and summer are prime months to buy, but people who are buying a home in fall or winter are serious buyers. They are buying with a purpose—whether they’re getting divorced or just realized they’re having triplets or they’re getting a job transfer. There’s a reason for that move.
As we approach the end of the summer, potentials buyers shouldn’t wait until next year. Instead, continue the search because the sooner a buyer joins this market, the further that potential investment can build over time.