Here are the top 3 questions I get as a real estate agent.
Question #1: How’s The Market?
It depends on the market segment that you are interested in. Is it detached homes or condos? And which areas are you interested in? My answer about how the market is doing really depends on your needs and wants.
There are very different things happening if you’re comparing detached homes to condo apartments. Condo apartments are a very strong market right now primarily because of affordability.
For both detached homes and condo apartments, sales overall were down 34.9% in March 2018.
The drop in sales can be linked to the Ontario Fair Housing Plan (OFHP). The plan included the introduction of the 15% non-resident speculation tax. Essentially, OFHP had a negative psychological impact on buyers as they became unsure about buying and waited on the sidelines for home prices to drop.
Question #2: Is now a good time to buy?
My answer is “yes.”
The Toronto Real Estate Board released its outlook for 2018 and they predict a slower start to the first half of the year, but the second of half of the year will see homes sales and prices picking back up.
Why does TREB think sales and prices will rise? Well, they are thinking that the negative psychological impact of the Ontario Fair Housing Plan, the introduction of the stress test and new mortgage rules will slowly melt away in people’s minds.
Now I don’t believe that buyer’s concerns will fall away if we just let some time pass, but I do think that over time we will all adjust to the new rules and will get back to business.
So considering that prices are expected to creep back up later in the year, I’m telling my buyers that now is a good time to start your home search again. There is less competition and the prices are flat to lower for freehold homes and prices for condos are going to go up.
Question #3: Is now a good time to sell?
To answer this question I would like to look at Months of Inventory which is a measure of how fast all the existing homes on the market would take to sell assuming no more listings are added.
To have a balanced market you want to see about 5 – 7 month of inventory, which means you’d generally have an equal number of buyers and sellers.
In March 2018 we’re looking at 2.9 months of inventory, which means we have more buyers than we do sellers and this will keep selling prices of homes on the higher side.
So although detached homes, for example, have gone down year-over-year, if you look at the historical numbers, you are still getting very good value.
For those of you planning to sell, if you have a hot, ready to move in turnkey, in a desirable area, and the price is appealing to price-conscious buyers, you’ve got a good opportunity to sell quickly considering the current average days on market is 32 days.
So there are the top 3 questions that I am asked as a real estate agent. If you have additional questions or comments, please leave them below