Toronto Sales: August 2018
According to the August 2018 market numbers, sales increased by 8.5% from the same time last year and the average sale price is up 4.7% to $765,270.
This is the third month in a row that TREB has reported positive numbers, which does not come as a surprise as we know that the slow down at the beginning of the year would only be temporary.
The real estate market continues to stay strong and you can expect the steady increase in numbers to continue until the end of the year.
Are you thinking about buying or selling this year? If you are, keep reading to find out if now is the right time to make your move.
What you need to know if you’re buying
If you are debating if you should or can buy now, I would strongly suggest speaking to a mortgage broker to understand your current buying power. Having a mortgage broker pre-approve for a mortgage doesn't cost you anything, so why wouldn't you?
Why I am telling you to do this now? Well the market sales data is telling us that the cost of real estate is going up every month and will continue to go up for the rest of 2018.
In addition, although the Bank of Canada is keeping its benchmark interest rate steady at 1.5% for the month of September, the speculation is that it won't stay this way for very long and interest rates can go up as early as October.
What does this mean for buyers? It’s going to cost more to borrow money, which means it’s going to cost you more to pay your mortgage every month. So if you’re able, lock in now before having to pay more.
If you need a referral for a mortgage broker or if you have questions contact me.
What you need to know if you’re selling
As you see that prices are up 4.7% this month and that prices are expected to keep rising in the coming months, you may be thinking that you should wait a bit longer before selling.
Here’s why you shouldn’t wait: Buyers are coming back to the market now and they may not be around when the prices go up future, because not only are prices going up, so are interest rates.
These increases will make it harder for buyers to afford your home. It's also important to know that the general increase in sales may not apply to your home type.
Here is the break down of the sales data by home type:
- Detached Homes up 17%
- Semi-Detached down 1.0%
- Townhouse up 5.6%
- Condo Apartment up 0.7%
We are now entering into the fall market and if you want to capitalize on the current market and the current buyers out there looking for a home, contact me.