It has been said that 'location, location, and location' are the three most important things when it comes to real estate investment. However, investing in the 'right' location at the wrong time can turn out to be disastrous. Thus, the importance of timing when buying or selling real estate cannot be overemphasized.
‘Is now the right time to buy or sell real estate investments’? This is a question being asked by investors all over Canada. With the uncertainty brought about by the coronavirus pandemic, people have become hesitant to sell. As a result, inventory levels have remained low, thus keeping prices high.
Factors to consider
Here are a few things to consider when deciding whether now is a good time to buy or sell:
Home prices
In September 2021, the average price of a single-family home was $686,656 (based on a Canadian Real Estate Association report). According to a Housing Market Report for the same month, Toronto’s housing market experienced an 18% year-over-year growth in home prices, while Vancouver had a 14% increase in prices. Some Ontario cities also experienced steady growth in median home prices within the same period. Ottawa’s housing market had a 5% monthly increase in prices compared to August 2021, while Mississauga’s housing market experienced an 8% monthly increase.
Interest rates
Mortgage rates have remained relatively stable in Canada. In July 2021, the Canada Mortgage and Housing Corporation (CMHC) reversed the underwriting criteria established in July 2020. This reversal reduced restrictions for mortgage insurance, namely debt service limits and credit score requirements. Consequently, it became easier for real estate investors to qualify for a CMHC-insured mortgage.
Housing market trends
Housing market trends determine how profitable an investment will be and how fast. This is why investors need to understand the housing market, its history, and any changes expected in the future. Real estate is a cyclical industry where demand and supply keep fluctuating. Consult real estate investing experts to get the most up-to-date information on the housing market.
Conclusion
Whether you plan to invest or sell a detached home, semi-detached home, condo apartment, or townhouse, let us help you navigate these uncertain times. Even if you conduct extensive research, you cannot replace the expertise of an established company like Regalway Homes. With our years of experience investing in property, we will provide expert guidance and help you make a wise investment decision.