What to expect in 2013

It is that time of the year where we look back at the year that was in real estate and also look at what we can expect next year.
I do not want to say I told you so, but I guess I did! We saw the price growth moderate to 2-3%. That is exactly what I had said for 2012 real estate prices in GTA.
Thank god that the real estate industry had a soft landing. All thanks to the Canadian Finance minister and the Bank of Canada’s sensible steps taken towards that direction. Yes, the first half of the year saw good sales of homes but come July the new mortgage rules helped take some hot air out of the housing balloon. The new mortgage rules have resulted in drop in volume of homes being sold or bought but has not resulted in the drop in prices of properties in GTA, which is great news for all of us!
So, what should sellers and buyers expect next year?
The sellers can expect to sell their houses at prices no higher than the current prices. They can also expect lower number of offers on their properties. But the bright side of that is that the offers they receive will be from serious buyers, not speculators. Sellers can also expect their properties to stay longer in the market. Multiple offers will be a thing of the past.
The buyers can expect to find lesser choice in the market as sellers are withdrawing from the market as it slows down. Therefore the drop in the number of sales. However, buyers will have time to take their decisions because the houses will stay longer in the marketplace. Also, unlike in the recent past, they will have equal bargaining powers as the sellers. The buyers will find that the biggest challenge in closing on a deal is getting a mortgage, so getting a pre-approval for a mortgage would be a wise thing to do.
I am attaching a link to an article that talks about the CREA report for next year.
http://money.ca.msn.com/investing/news/business-news/crea-cuts-home-sales-forecast-for-12-and-44
Happy reading and do write in on what you think about the real estate market or any question you may have.

Victoria Carter

Victoria Carter

Sales Representative
CENTURY 21 Percy Fulton Ltd., Brokerage*
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