The Market is down but Glenn is UP!!! THIS IS A GREAT TIME TO BE IN THE MARKET.
According to the Toronto Real Estate Board report the March 2013 Market is down with only 7,765 transactions having been reported which is down 17 percent from the previous year. Yet the average price is up by about 3.8%. Frankly the 1st quarter 2013 is down a similar percentage in units sold and up about the anticipated similar dollar amount, so it all makes sense right?
Well here’s my take on all of this. 1st Interest rates are low which if you calculate what it actually costs per month to own a home it is unbelievable for those of us who have bought homes in a time where the entire purchase price was about the same as a modest new car today. We are looking at rates in the area of 2.8% depending on some conditions but that is absolutely crazy! So let’s just take a look at the interest on a $400,000 mortgage. Just the interest is under $1000.00 per month that’s about 2/3 the cost of rent. Oh you question my math, well that’s OK! I did say the interest only, the payment is almost double that but over $900 goes into your forced bank account per month. That is the amount against the principal. (Any time you have a question regarding this kind of calculation you are very very welcome to call me and I will be happy to make my explanations more complete)
Here’s some math I’m not as sure about, with an increase in price one would think that there is an issue of supply and demand, that is the general rule but look at this statistic, the number of listings is up, the sales are down and prices are up. According to TREB it may be that in some segment homes are harder to find to suit some buyers. That and what price range is actually selling can have an effect but what are the expectations of buyers vs the efforts by sellers, does that have an impact? I believe it does. This is why we have spent a great deal of time looking at what makes the marketing work to the best interest of our seller clients and how do we get the best of this market for our buyers. There are answers, there are theories, but each is a one on one conversation with the client.
Here is something I do want to pass on. The slowing market with the numbers that are showing up make our “out of area experience” over the last 7 years of utmost value. Discount brokers, the “posted” listing can compete with us for your business, they just can’t compete on the value that we bring to put not just small amounts but big dollars into your pocket.
The accompanied graphs are for a simple quick review of the market, for what works best for you, call text or email and we will make sense of it all for your specific requirements.