Is now the time to buy?
People are constantly in turmoil trying decide when is the right time to buy. Whether it's real estate or the stock market, unfortunately, unless you have access to a crystal ball, it's always going to be a guessing game. While we can't know what the future holds, past performance is the best predictor of future results, as they say. While, I have zero insight into what's has been happening with the stock market, the Toronto real estate market continues to perform well. 2015 was another record year for home sales in the GTA. With one of the most robust sales results for any December on record, 2015 finished with over 101,000 properties changing hands through the Toronto Real Estate Board last year. Not only was the total number of sales up by 9.2% from 2014, but we also had an increase in the average selling price of 9.8% overall, from $566,624 in 2014 to $622,217 in 2015. Even with the increased sales volume in 2015, there is currently a pent-up demand in the market caused by a low inventory of homes for sale. Almost uniformly across all home types, inventory levels were lower in 3rd quarter of 2015, vs the same period in 2014. In addition, it seems that buyers are taking less time to shop around, as the average number of days on the market also decreased across all home types, ranging from 29 days for condo apartments, to only 13 days for semi-detached homes. With the rules of supply and demand in effect, it would seem that prices are going to continue to rise.
Additonaly, lending rates are still near all time lows and are likely to stay low, with some experts predicting another rate cut coming from the Bank of Canada as early as January 20th. Further, the price of oil has been dragging down the Canadian dollar to new 12 year lows, which is likely to continue to drive foreign investment.
So is now the right time to buy? It certainly doesn't look like it's going to get any easier in the near future. If you are considering a purchase, but aren't quite ready to purchase today, when is the right time to start planning? Stay tuned for our next post with the answer to this question!