Strength in Numbers

Who knew? Even after the introduction of the new mortgage rules last Friday (see last blog for full details) homes are still attacting situations the likes of these 2 guys to the left. Many homes, priced well, not really below market value, as has been the strategy in the past, are garnering more than one, two or even 3+ interested parties! That to say, the Toronto real estate market is not following the predicted trend of slowing down. This was the general assumption that was anticipated after stricter rules were implemented last week. It's early days, but clearly the proof is in the pudding. In the last ten days alone, over 40 homes were sold in the Leslieville/Beach/East York area, half over the asking price, many of those $30K+ over the listed price. There is strength in numbers! Much of this we can put this down to a couple of factors; location, condition and price of the home. So, if you're interested in selling and want the best result, make sure your home is in tip top shape, sound and priced well. You're sure to get the attention of more than one interested buyer. And buyers, don't despair! Yes, bidding wars occur, but this is why this market is termed a 'goldilocks' market. It's not TOO hot and not TOO cold - it's just right. Meaning that while homes can sell quickly and over asking price, there are also many nice homes, well priced that are selling for asking or just under. No pressure there. So enjoy the coming months in either your search or sale of a new home. Everyone is bound to be happy with their result.

The Heat is On

Well, officially Spring is almost here, although you wouldn't know it outside. It's a brisk -18C as I write this.

With winter so far being a steady diet of warm, cold, warmer, colder, our Toronto Real Estate Market is riding the same path it seems.

Typcially, early January is a very quiet time indeed for real estate activity, but it was soon followed by a bit of a surge in sales late into the month. Early February was again a little quieter, and it appears now, as I write (March 2nd) the Spring Market has definitely Sprung. While this is a little atypical so early in March, the Federal Finance Minister, Jim Flaherty's mortgage changes for 2011 have seen a surge in listings and hungry buyers out to purchase a home before the new rules come into affect March 18, 2011. Which are:

1. The maximum amortization period for a government-insured mortgage was lowered from 35 to 30 years.

2. The upper limit that Canadians can borrow against their home equity was lowered from 90 per cent to 85 per cent.
3. Government insurance backing on home equity lines of credit, or HELOCs, has been removed.
While these rules make sense and force Canadians to tighten their belts a bit, it does mean higher mortgage payments over a shorter amortization period (approx $96/mth more) and that's enough to get buyers out in the cold to shop.

However, the confidence in our economy seems to be bourgeoning and it's unlikely the market will come to a standstill after March 18th.
It looks like a healthy, steady market is here to stay; for a while at least. There is no plan to increase the low interest rates we've been enjoying, just yet
so if you're a seller or a buyer, this could be a fruitful time for you. Enjoy the experience and (the soon to come we hope) warmer weather!