Many people are wondering if they missed the perfect moment to sell their property. We have the answer!
Depending on the day and who you ask, the housing market in Canada is strong and continuing to soar, or it’s deflating, and the housing bubble is over. It’s hard to know how to make a decision when it comes to selling or not.
According to one source:
“The Canadian Real Estate Association released its market projections for the remainder of the year and expects a 21.8% increase in Ontario home prices by the end of 2021, bringing the average Ontario home price up to $859,533. This is slightly higher than the national average projection of 19.3%, which would raise the average Canadian home price to $677,774.” (Dailyhive.com)
According to another:
“A rough estimate shows home prices need to rise 1.95% in July alone to prevent deceleration. That’s roughly a $20,500 price increase for the composite. It’s not impossible, but it’s a big change from the $4,500 climb made last month. Especially while some segments produce negative monthly price growth.” (https://betterdwelling.com/)
When you have such differences in forecasting, you need to use your own best judgment.
When considering selling your own residence to buy a new home, we say keep pushing through the sale, and the difference in profit versus what you pay for your new property should even out, regardless of whether you sold at the peak or in the interim between peak and lull. Real estate investing is an entirely different ballgame, however. Emotion is not a good friend to you if you are investing, so you need to keep a level head and crunch the numbers.
Advice to Help You Handle The Housing Bubble:
Consider the local market value, continuously look at comps and the fact that it could fluctuate significantly if you do not sell very quickly.
Think about the value of your property pre-pandemic and the amount you have invested. Bubble profits have been running at approximately 12% year-over-year, so have the lowest number in mind, and if the offers are coming in lower, you may want to reconsider the timing of your sale.
Consider the inevitable: people will be going back to work. Cottages and lake houses have been very popular investments over the last few months, but rent in the metropolitan areas continues to go up. As people return back to work in person, it may be more beneficial to hold on to your property for rental income - depending on its location.
The real estate investment market in Canada today is exciting, with lots of money-making opportunities for the right person. If you’re interested in getting involved, but it all seems a little overwhelming, get in touch! We can help you figure out the best option for you and help you start making money quickly.
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