Lazy Daze of Summer

Who would have thought that in three short months the booming Toronto real estate market would change so dramatically? It wasn't really a shock, but the HST put fear into the hearts and minds of buyers and sellers. And justly. While there was no dramatic financial concerns dealing with resale homes (no HST on a resale home purchase) the commissions and other services that come with a transaction had yet, another tax. At the same time as the introduction of the HST came a slight crackdown by the banks on mortgage qualification and the dissolution of 0% down for home buyers. Clearly, these are deterrents and the market has shown that. While sales are still constant, prices remain as they did in the earlier part of 2010 slowing the number of sales by roughly 30+% from the same time last year. On a positive note, interest rates remain low and for buyers, this is an opportunity to get into the real estate market sans bidding wars and stressful competition from 7 or 8 buyers for one property. With a 5% down payment (minimum) and a good credit rating and steady income, you are a good candidate for buying a home a good price. Without bidding wars and competition the process can be a more relaxing and thought out one. Sellers can expect to have their homes on the market a little longer than the traditional 'week' when the market is driven by supply and demand, but if you price well and your home shows its value you will be a satisfied seller. Let's hope the market wakes up this fall (traditionally a busier time than summer) and that both buyers and sellers find that perfect match! Until then, enjoy the rest of summer and have a great Labour Day weekend. Stay tuned for more updates in September.