Is Now a Good Time To Buy Real Estate?

This is a question that is on many first time home buyer’s minds and is also likely on the minds of buyers who may be wanting to upsize or downsize. There are fears of a slowdown in the Toronto Real Estate market, stoked by media hysteria and generalizations. Toronto Real Estate Agents are being asked by their clients, should we buy now or wait till later?

While it’s true that real estate in Toronto is not cheap, and that the number of Toronto MLS Listings & sales has decreased compared to last year according to the real estate board market statistics, it’s also true that the prices on average in most Toronto neighbourhoods have increased.

  Most if not all of that increase has been in the ‘freehold’ market. The Toronto condo market has conversely seen some declines in average selling prices, both in the 416 and 905 areas. This is not unexpected, given the large supply of new condos being built throughout the GTA. Real estate prices are subject to the laws of supply and demand.

My thoughts are as follows: One should not try to time the market. That has been a losing strategy in Toronto for many years. If you are at the right stage in your life to own real estate, have the necessary down payment, either have secure employment or are a thriving self-employed entrepreneur, and are currently paying rent, then I suggest taking the plunge. After all, real estate has been a very sound investment for centuries. Having said that, one should not over-extend oneself, and a having a decent down payment is advisable. A mortgage broker or your bank should be able to assist you with determining what is appropriate.

If you already own property, and are looking to make a purchase for investment reasons, then there are still options that can provide a decent return, both in the 416 and 905 area code. However, one has to be strategic, targeted and selective. The bottom line, ‘all real estate is local’. This is a cliché, but it’s true. Generalizations are not advisable. This year, as in all previous years, some areas are experiencing faster appreciation than others, and some areas are not appreciating at all. Your Toronto Century 21 realtor should be able to assist you in making an appropriate decision.

If I hope this year brings you much success, no matter what choice you make, and remember, real estate has historically been a very sound way to build wealth and equity.

Ram

 

Ram Rajendram is a Toronto Real Estate Broker with Century 21 Harvest Realty Ltd. He sells condos and houses throughout the GTA, and assists home and condo buyers with their purchasing needs. He is also a Canadian Chartered Accountant and holds a Bachelors Degree in Economics from the London School of Economics (LSE)

 

  

Ram Rajendram

Ram Rajendram

Real Estate Broker
CENTURY 21 Harvest Realty Ltd., Brokerage*
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