Spring is a unique season in real estate terms. It’s the time of year when we see the most activity, with “For Sale” signs dotting nearly every neighborhood, and open houses and showings become the norm across the country.
The Star has already dubbed it “a … spring real estate season like none in memory.” Spring is usually the “hottest season” when it comes to home sales. Realtors are warning buyers to expect a lot of competition for homes. Many of these will receive multiple offers, and will go at above-asking prices. While it’s not advisable to over-extend finances, buyers have to be prepared to participate in and win bidding wars if they are to get a piece of the real estate pie.
In April 2017 the Canadian Real Estate Association reported that national home sales had risen in more than 50 percent of the local markets when compared to March. Sales for March were also higher than those for February. Leading the pack were Montreal, London & St. Thomas, and the Lower Mainland of British Columbia. The largest increase was seen in the Greater Toronto Area (GTA), and this counterweighed a drop in the quantity of houses being bought and sold in Greater Vancouver.
In addition to the changes seen in the GTA and the Lower Mainland of British Columbia, Calgary and Edmonton also showed increases, and the amount of new listings rose by 2.5 percent overall in March 2017. Most of the local housing markets are situated in the GTA and its environs, in and around southwestern Ontario, and in British Columbia. The ratio exceeded the sellers’ market threshold in about 60 percent of these markets. Our mortgage agents at Sky Financial can help you get the best interest rate for your next mortgage.
Prices have recovered recently in Greater Vancouver and the Fraser Valley after having fallen in the last two quarters of last year. House prices in those two areas are well above levels found a year ago – 12.7 percent year on year and 19.4 percent year on year respectively. In comparison, house prices dropped by 1.5 percent y-o-y in Saskatoon, and 1.2 percent y-o-y in Calgary. Prices in those two markets are now 5.1 percent and 5.4 percent under their respective upper limits reached in 2015.
Greater Toronto and Greater Vancouver remain two of Canada’s most expensive, most active, and tightest housing markets. The average price nationwide continues to be drawn upward by sales activity in those two markets. This is a great time for both homebuyers and sellers. Click here to speak to us about your interest rate.
If you’re a homeowner trying to decide whether to find a new home before selling your existing one, there are no easy answers. You must consider the pros and cons of each option. You may have to find a place to live temporarily, and to store your furniture and other effects before you can move into your new home if you decide to sell your existing house before purchasing a new one. On the other hand, your offer may be more attractive to sellers who want to close right away. You’ll also have a more precise budget to put toward your new home.
You’ll be paying two mortgages if you wait to buy your new home before selling your existing one, and you’ll also have to pay two sets of housing related expenses. This alternative, however, gives you more flexibility and time to find the perfect place.
Before making your final decision, speak to one of our mortgage agents and review all your options.