Royal LePage, Canada’s largest and oldest real estate brokerage released their quarterly Royal LePage House Price and Market Survey yesterday. It calls for very modest home price appreciation over the next few years.
This view is largely shared by TD Bank Financial Group, the Ontario Real Estate Association, and leading real estate lawyer and commentator Mark Weisleder. It is the view I support and have shared with all of my clients over the last 18 months. Economic ‘fundamentals’ are strong, immigration into the GTA is strong, and interest rates remain low (TD forecasts no more than 2-25 basis point increases late in the year, if at all).
In 2013, expect a slower first half of the year similar to what we have seen over the last three months-fewer listings and fewer sales. Listings and sales are expected to rise in the last quarter of 2013.
The expected result? Similar sales volumes to 2012 but lower price growth (flat to 3% vs. 6-11% growth in various GTA Markets).
Selling Now? There is comparatively little quality inventory in most neighbourhoods and micro-markets (e.g. townhouses, certain price points) within those neighbourhoods. Listing now will provide serious buyers with a choice they have lacked-your quality listing.
Waiting to Sell until things ‘pick-up’ and prices rise? Timing the market rarely works. An appropriately priced and properly marketed property will always sell. And prices are not going to appreciate as quickly as they have in the past.
Buying Now? Many buyers seem to be waiting on the sidelines, so you can be first to see quality properties, without the ‘competition’ and stress of multiple offer scenarios.
Waiting to Buy until prices drop? While there may be more choice later in the spring, you will be joining the game with your competitors. And prices aren’t likely to drop.
Call us today and let’s get started.
The Blair Zilkey Team-Insightful Advice, Leading Edge Implementation