You have heard the phrase, buy low sell high, but how do you know when exactly is the best time to sell? I’ll make it easy for you… the best time to sell your house is right now, let me explain why. 2016 has been breaking records for the highest year-over-year price increases. Almost every listing has enjoyed bidding wars with several offers leading to sale prices far above asking price. Historically, the real estate market has experienced a slowdown in the summer. This year however has been a complete exception. The month of July reached a record breaking all time high for the year over year prince increases in Ontario, particularly in the GTA. The Canadian Real Estate Association (CREA) has reported that this July, the average price for homes in the Greater Toronto Area went up 16.5% higher than just 1 year before. Beyond that, homes are selling more quickly than ever before. Houses that would normally sell in 3-6 weeks are now selling in less than a week, and sometimes in just a few days. So why is this happening? From an economic perspective, the answer is simple – very low supply and very high demand. Let’s talk about the low supply first. In the same report, CREA noted that residential listings in Ontario are down 29.1% year over year, that’s a major drop that represents the lowest level of supply in over a decade. This means if you put your house up for sale, every buyer and their brother will be competing for it. But that’s just half of the story. On the demand side, we have more active buyers in the market than ever before. This is fueled by a number of economic factors. Firstly, interest rates have reached an all-time low making it extremely cheap to borrow money for the purpose of a mortgage. The last report I saw from my mortgage broker was 2.29%, no negotiation needed. Beyond that, the low Canadian dollar has fueled investment from buyers across the globe that have taken notice of the hot Canadian market and want a piece of the action. One of the last houses I sold was purchased by a Chinese investor who had never even seen the house in person, only through my HD Pictures and Virtual Tour that I had posted online – if that doesn’t represent confidence in the market, I don’t know what does. The third factor that contributes to high levels of demand is immigration. Ontario alone accepts about 100,000 immigrants per year, the majority of which are wealthy, highly educated and come to the GTA to raise a family and work towards home ownership.
So there you have it, the current economic conditions have created a boom in the real estate market and savvy homeowners are taking the opportunity to cash out at record breaking prices. Do you know how much your house is worth and how much you could make from selling? Well you should. Contact me today for a free evaluation of your house. This year the average sale price of houses I have sold is $60,179 over asking price. That’s worth looking into!
Century 21 Real Estate Agent