Driving around Toronto these days, you actually see For Sale and Open House signs up in neighborhoods. This is exciting! While the last few years have been exciting, I believe his balanced, non-frenzied market is strong with potential benefits for buyers, sellers, and investors.
Whether or not to buy, sell or invest at any given time for any one individual or family depends on many factors. The real estate market and the prices that result from the forces of supply and demand are only some factors to consider. Your current personal, professional and financial goals and milestones will also be key in your decision.
If you are a buyer, here are some positives to consider:
· Recent requirements for a 20% down payment protect prospective buyers from over-extending their debt.
· With increased supply in the housing market, prospective buyers have more choice, more time to consider different homes and review home inspections.
· Increased tax requirements for foreign buyers tempers the foreign demand somewhat and may be beneficial to buyers who reside in Canada.
· Over time, once the forces of supply and demand set in, prices may become more stable and predictable and potentially, more affordable.
· Real estate, over time, appreciates and continues to be a very good investment.
· Interest rates remain historically low and any anticipated increase would likely be modest.
If you are a seller, consider the following benefits:
· With more days on the open market, sellers will be in a position to consider best offers over the course of days, not hours.
· With a tempering of real estate speculations, homeowners will live in neighbors where all or most homes are lived in year-round. This increases security and improves the sense of community.
· Home prices (otherwise seen as asset value) may be more stable and predictable, allowing for better financial and retirement planning.
· If you have been in your home for a while, you can use the value from your home to downsize and fund an earlier retirement or you can leverage the value from your current home to upsize to your future home.