November Real Estate Update

Historically October is the busiest month of the Fall market and once again this year was no exception. In October, 7118 homes were sold which represented an above-average increase of homes sold between September and October, this amongst to almost 12%, a more pronounced increase than usual. That points to a stronger Fall market. We are not surprised given the government’s announcement of stricter mortgage qualifications starting January 1, 2018.

The change in mortgage qualifications lowers the amount of mortgage that buyers will be able to get, thus eroding their maximum purchase price.

This has created 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 we expect lower than normal sales at the start of the year. Sales at the start of 2018 will be impacted as well as some people will wait to see what happens. (Some of our 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 we would strongly suggest you consider doing it right now as the demand is strong. 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 we may recommend a different strategy for you.

Give us a call, let’s talk. We want to give you the best advice possible and make sure that you’re well looked after! After all, you do have two friends in real estate!

By the way, we are never too busy for your referrals. 

Lloyd and Devi Sewrattan

Sales Representatives

Re/Max Realtron Realty Inc.

416-706-7410 – Cell

Visit us at www.lloydanddevi.com