4 Clear Signs Showing That Now Is A Good Time To Buy A Home In Toronto

By
Real Estate Agent with Right At Home Realty Inc., Brokerage

There is something mind-boggling about the real estate market in the Greater Toronto. Indeed, it defies every economics theorem experts throw at it.

 

Something must be up when both levels of governments are scratching their heads. How can they ease the burden of rogue housing pricing on local home buyers? Home sellers are asking if they should stay and renovate? Or should they move and cash out of Canada’s red-hot housing market? At the same time, homebuyers are asking if they should buy now? Or should they wait for the market to cool off?

 

"Is now a good time to buy a home?" That is the premise of this blog post.

 

We are experiencing a home pricing hysteria. They are signs that identify why now? Other signs may stress to stay put. Today, we will only discuss the four (4) main reasons to buy your home now.

 

The next four explanations are taking the cake. If you’ve been thinking about purchasing a house in the Greater Toronto, read this blog. If you feel that you are reading conflicting real estate news in the media, check them out. Be warned: some of these reasons are BOLD.

 

1) Mortgage Interest Rates Are Moving Up

 

Many major Canadian banks have hiked their lending rates. It all started with Toronto-Dominion Bank (TD). Then the Canadian Bank of Commerce (CIBC) and Royal Bank of Canada (RBC) followed suit. It is a trend expected to continue with other major financial institutions. In fact, fixed mortgage rates have increased by about 0.60% since November 2016.

 

The Government of Canada bond yields price fixed rates. So, when the Government of Canada bond yields increases, mortgage fixed rates go up.

 

Also, stricter government regulations and higher capital holding requirements are also culprits. They made it more expensive for mortgage lenders to finance their instruments.

 

If we step back for a moment, the historical average 5-year fixed mortgage rate in Canada is around 5%. While the historical discounted 5-year mortgage rate is in the high 2%, still no need to panic. But keep in mind that rates are on the move.

 

2) Prices Will Continue To Increase

 

We saw that Canadian mortgage rates are remaining low. Now, combined this with low housing inventory and you have a recipe for home pricing hysteria.

 

Although governments attempt to cool down the market, we saw no slowing down. House prices are continuing to increase.

 

The Canadian Real Estate Association (CREA) developed the MLS® Home Price Index Composite. It reports that home prices in the Greater Toronto have appreciated by 23.83% over the past 12 months.

 

The bottom in home prices has come and gone. Home prices will continue to rise for years. Waiting no longer add up.

 

3) You Need To Move On With Life

 

The price of a home and our current mortgage rate environment are rising. These are two major components of determining the “cost” of ownership. What if they weren’t increasing? Would you still wait?

 

Look at the primary motive of your move and assess whether it is worth waiting.

 

Whether you want to go into a neighborhood that reflects your personality. You want a great place to raise your children. You prefer to be closer to your family. You need to move because of life circumstances. Because of job changes or relationship changes. You are upgrading or downsizing your home. You are experiencing financial difficulties. Or you want to have control over renovations. It is time to buy.

 

4) Whether You Like It Or Not, You Will Still Be Paying For A Mortgage

 

Because you’ll be paying for housing why not build that equity for yourself anyway?

 

One of the principal advantages of owning a home is building equity. It provides financial security. You could access that capital to establish a home equity line of credit (HELOC). You may borrow against your equity for many reasons.

 

Think about it. You could renovate your home. You may invest for your retirement. You might pay for medical bills not covered by your plan(s). You may be able to put your children through post-secondary school. You could help your adult children to buy their first home. Or you might even start your own business. Remember to consult your trusted mortgage broker for availability and eligibility.

 

If you have concluded that purchasing a home is the right move for you and your family, congratulations. Buying sooner than later could lead to considerable savings. Waiting for tomorrow may be debatable, but it is an argument that needs consideration.

 

These are few reasons why buying now is a sound investment. Want to learn more? Download the below eBook.

 

Over to you. Do you have any others to add or you agree to differ? Let me know in the comment below.

 

Buy Now in Toronto or Wait for a market correction

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Ontario Toronto Toronto
Tags:
buy now
why buy a home now
buying a home now
wait for market correction
shoul i buy or should i wait

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,613,568
Harry F. D'Elia
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thank you very much for providing your local real estate information with us this morning

Apr 05, 2017 05:41 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
10,653

Danny Kellman

Real Estate The Smart Way!
Ask me a question
*
*
*
*
Spam prevention