As the province’s population continues to expand, real estate prices in the Greater Toronto Area continue to rise and the July average home price in the GTA reached $719,906. With the average family income still below the national average, homeowners continue to be the driving force behind the GTA’s economic growth. If you’re sitting on the sidelines, waiting for prices to drop before making your first move, we have some bad news for you. It looks like this real estate bubble is here to stay, and an inevitable real estate crash is not in the books, at least not in the interim. Not to worry, we have some tips and tricks to help you maximize your returns as a seller and buyer in this hot Toronto real estate market.
If you are currently a seller, you are definitely in luck! The current market can most accurately be described as a seller’s market and now is your chance to get a hefty return on your real estate property investment. Here are some tips to help you take advantage of this market, after all, now is most definitely the time to sell.
With limited properties available, and demand being higher than supply, it is important to do your research and set a price that fits with the current market value of your home. Buyers that are currently shopping around have a general idea on what the market value of homes are based on size, location and the property itself and no one wants to do business with an overambitious seller. While this is a good time to get a higher than expected price, it is important to not be too greedy, too soon.
As with the previous point, now is the time to take advantage of bidding wars. Perhaps, it may be a good idea to price your home slightly under market value in order to generate an abundance of interest and end up with a higher selling price. With the current limited supply of homes available this may be the way to get the maximum price for your home. Talk to your real estate agent to learn more about the different options available.
Now is most definitely the time to act! Even though it looks like the market will continue to rise, none of us know what the future holds. If you are ready to sell your home, now is the time to put it on the market and capitalize on the tremendous capital gains available.
If you are currently looking to purchase a property, the real estate market may seem intimidating, and you may be thinking that its best to hold off on buying your dream home. This may not work out, if history repeats itself. During the 2008 housing crisis, many buyers were advised to hold off and wait for home prices to drop. Unfortunately for them, prices never did drop significantly, and in fact they had doubled by 2016. With that in mind, here are some tips which you can use to make the most of the current seller’s market.
There are so many buyers and sellers in the market right now, and properties are being snatched up nearly as fast as they come on to the market. To make sure that you can get your dream property, make sure that you have your finances pre approved so that you can make an offer right away.
When demand is high and supply is low, sellers have the ability to over value their home and they are likely to still find a buyer. To avoid overpaying for your next property, take some time to do some research on comparable properties and their average selling price. This will give you a good indication about whether or not you are getting the most value for your dollar.
With the current market boom, you may not get everything that you want in a home in your budget. Before you start looking at properties, take a moment to determine your priorities and look at which qualities you would be willing to forego. Perhaps you would rather have a larger home in a remote location to enjoy the quiet of nature or you may choose to purchase a smaller property in the heart of downtown to enjoy the hustle and bustle of the city. By determining your priorities, you’ll be able to make a better decision and purchase the home that is right for you.
Take advantage of low interest rates
For the first time in this decade, interest rates are at an all time low making it much easier to get approved for a mortgage. Although the house price may be much higher than you had anticipated, locking in a lower mortgage rate may prove to be extremely beneficial down the road, especially as the interest rates rise post pandemic. Additionally, now is the time to take advantage of the CMHC First-Time Home Buyer Incentive. With this incentive first-time home buyers in the Toronto CMA, Vancouver CMA, and Victoria CMA are eligible to borrow between 5% to 10% of a property's price from the Federal government interest-free for their down payment.
As a buyer, perhaps you should consider purchasing an investment property, to rent or flip in the current market. This has the potential to yield astronomical returns and something to consider if you have the financial capital available to purchase a property in the current Toronto Real Estate market.
It doesn’t look like the Toronto real estate market will be crashing any time soon so now is the time to think smart and act fast to buy or sell your dream home. If you have any questions or you want to discuss potential options, give us a call. We are more than happy to assist you in your buying or selling journey!