People often ask me "How is the market doing right now" and "Is it a good time to buy" . The answer is not an easy one. Many factors determine how a market is doing. Interest rates, mortgage qualifying rules, market inventory, number of buyers vs. sellers, job security, employment rates and immigration patterns among other indicators all have an impact on market conditions.
Home ownership is always a good choice if you can afford it. And I always tell my clients, that when you buy you should look at the long term of buying. Of course, your individual circumstances will inevitably determine your financial situation so you should seek professional advice before diving in.
A mortgage broker can advise you from a financial standpoint. And your accountant's expertise will be important especially if purchasing a second or third property as they will advise you how tax laws will affect you when you want or need to sell.
The good news is knowing that there continues to be a healthy increase in the average selling price of homes, well above the rate of inflation.
Greater Toronto Area REALTORS® reported 7,411 residential sales through the Toronto MLS system in September 2013, representing a 30 per cent increase compared to 5,687 transactions reported in September 2012. Year-to-date, total residential sales reported through Toronto MLS amounted to 68,907 during the first nine months of 2013 – down by one per cent compared to the same period in 2012.
The average selling price for September transactions however, was $533,797 – up by 6.5 per cent year-over-year. Through the first three quarters of 2013, the average selling price was $520,118 – up by over four per cent compared to the first nine months of 2012. This is good news for home buyers.
The price growth story in September continues to be about strong demand for low-rise home types, coupled with a short supply of listings. Even with slower price growth and month-to-month volatility in the condo apartment market, overall annual price growth has been well above the rate of inflation this year.