The weather is warming up, and so is our local real estate market. Homes are now selling extremely quickly, and competition is alive and well. Buyers are already out in full force. Despite a frigid start during the first quarter, sales transactions are up over 10% in comparison with last year's. Inventory may still be quite low, but sellers simply tend to wait until spring before they get their homes market-ready.
There is a generous supply of condos available around the city, which means that there will be plenty of investment opportunities. Remember, location is key in choosing the right investment property, so not all neighbourhoods experience the same level of demand or appreciation. Choosing a Realtor who understands your long-term objective is the best way to build a successful portfolio in a competitive market.
For the longest time, we have been told that the Toronto market is on the verge of a "cooling off" period. As a result, many potential buyers waited on the sidelines, hoping lower prices would just be around the corner. That really hasn't happened. Waiting to buy in a high-demand market is often a costly decision. The same property tends to increase in value annually, forcing buyers who put off getting into the market to compromise. In February, the Toronto Real Estate Board reported that the average sale price was up 7.8% compared to 2014's. Keep in mind that buying a home today is the best way to build equity for tomorrow.
Rock-bottom interest rates have boosted mortgage affordability, and reduced monthly payments. We aren't sure if or when rates will increase, but locking into a five-year term keeps your payments affordable as you pay down your mortgage. Although prices are on the rise, today's record-setting mortgage rates make it easy to build wealth with the help of a low borrowing cost.