Positive Signs in the Housing Market

Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 8,491 residential sales through TREB's MLS® System in October 2019. This result represented a 14 per cent increase compared to 7,448 sales reported in October 2018. GTA-wide, sales were up on a year-over-year basis for all major home types.

The trend of annual growth in sales versus annual decline in new listings continued in October 2019, with new listings down by 9.6 per cent compared to October 2018. The resulting tighter market conditions compared to a year ago resulted in positive annual rates of price growth across all major market segments, from a GTA-wide perspective.

The MLS® Home Price Index Composite Benchmark was up by 5.8 per cent on a year-over-year basis in October 2019 – the strongest annual rate of growth since December 2017. The average selling price for all home types combined was up by 5.5 per cent to $852,142, compared to $807,538 in October 2018.

"As market conditions in the GTA have steadily tightened throughout 2019, we have seen an acceleration in the annual rate of price growth. While the current pace of price growth remains moderate, we will likely see stronger price growth moving forward if sales growth continues to outpace listings growth, leading to more competition between home buyers," said Jason Mercer, TREB's Chief Market Analyst.

Should You Pay More For The Home You Want?

Say you have identified the characteristics of the perfect home and established a budget for your search.  Ideally, you want to find that home within that price range.  But, what if you come across a property for sale that is perfect in almost every way -  except its over-the-budget price?

Do you walk away?  That depends on a number of factors:

• Can you afford a higher price?  Can you get approved for a higher mortgage and carry it comfortably?
• How likely are you to find a similar property for a lower price?
• What impact will this home have on your lifestyle?  In other words, on a scale of 1 to 10, what is the "I'm going to love living here" factor?
• Does the property have any unique features you'll have a tough time finding in another home?  For example, does it have an awesome open concept renovated kitchen with a full-size Centre Island?
• What is the likelihood that a lower price can be negotiated?
• What's the investment potential of the property?  Is this the type of desirable home that will probably go up in value substantially over the years?
  

I can help you find the answers to many of these questions and guide you through the process respecting your timelines and financial goals.

Call me to set up a time to have a confidential conversation.

Jamie