My 2018 Toronto Real Estate Crystal Ball Predictions
January 12, 2018
It’s about this time of year that I bring out my crystal ball to try and see what the real estate market is going to look like in the upcoming months.
Unfortunately, as in previous years, it’s a little foggy. It’s actually foggier than usual this year. The big question is how will the new mortgage regulations affect homebuyers? The Globe’s Rob Carrick predicts that between the regulations and interest rate hikes, this is “the year that kills home-ownership dreams for many aspiring first-time buyers.” Those are frightening words. I choose to be a little more optimistic.
The boomers are still downsizing and able to help out their kids with down payments, so even with a stress test there are still qualified buyers out there. There is still competition in Toronto for homes, both single-family and condos.
In terms of pricing, I suspect there may not be too much of a change. I think prices will continue to go up, but the increase will continue at a lower pace. And the number of sales (though not the number of listings) will be reduced. That’s what my crystal ball is telling me.
So what should you do if you’re planning a move this year? Your first step is to get your finances in order. Get a pre-approval from a mortgage broker and figure out what you can afford. In terms of timing, you can work backwards. Four months is usually a good time to give yourself from the beginning of preparation to the day you move into a new home, although it depends on how much work has to be done.
Steps to take if you’re getting ready for the spring market
There are a number of things you want to start considering when you’re thinking about a move. Do you have a goal date in mind? Do you absolutely need to move by a certain date? You can always try to strategize around the market, but the market changes. You should make sure that whatever time you choose is best for your own schedule.
The market can be fairly slow in January because everybody else thinks it’s not the right time to list. However, there’s often less competition and with a huge amount of demand, it isn’t a bad time to list – the buyers that come out are serious.
Get a realtor on board to give you an idea of what things actually need to be done. I often find that people think they need to do more to their home than they actually do. A professional can save you time and money because you’re not spending money on improvements that won’t net anything in the end.
A good realtor will give you a staging consultation and recommend a stager if necessary.
What’s Happening With Your Mortgage?
Unless you’re a first-time buyer, you likely already have a mortgage. You should have a conversation with your lender to find out the discharge fee. If you’re able to port your mortgage over to the new property, you’ll want to know what that looks like in terms of cost and timing.
Get a Head Start on Packing
You’re going to have to pack anyway so, if you’re planning a move, it’s never too early to get started! I don’t want to add to your post-holiday to-do list, but if you’re rummaging around in the basement or garage looking for another inch of space to store-away this Christmas’ decorations, it may also be a good time to start purging!! Clearing out items you don’t need may feel like a major task, but you don’t have to tackle it all at once. Starting early will create less pressure. And you’ll be surprised at how good you feel once you start getting rid of stuff.
Click here for more information on making a move
Calling in a Realtor at the very start is key to getting organized for your future move.
I can help keep your plans in perspective, keep you on track, connect you with those that can help and keep you moving towards your ultimate goal; a successful sale in the time you need it!! Please get in touch if you have any questions about making a move or the Toronto Real Estate Market!