The housing market in Ontario continues to boom. Research found that supply dropped by 43 percent, causing prices to increase significantly. The average house price in Toronto is over $1 million, yet interest rates are staying incredibly low.
Whether you are a home buyer, seller, or even just a property owner, there is a way that you can take advantage of the market. Let’s look at how.
Benefits for Sellers
The obvious benefit for sellers is increasing your asking price and fully expecting to get that or more. Real Estate professionals have noted that most homes have over ten offers on them.
So, as a seller, you’ll have the advantage of being able to ask for terms that suit you, because if the first bidder fails to oblige, you can be sure that someone will be willing to accept your terms. And, properties are selling quickly due to the high demand. So, you won’t have to wait long before the offers begin to pour in.
If you intend to sell first and buy your next home, this is something to keep in mind. You’ll need to coordinate the timing carefully to ensure you have somewhere to move once you’ve sold your home.
Advantages for Buyers
While it may seem that the tight housing market favours sellers, there is something that buyers can benefit from, low interest rates. Many lenders are offering historically low-interest rates for mortgages.
No matter what type of mortgage product you’re looking for, you can lock in the low rate if approved. This will benefit you for the life of your mortgage. When rates increase, if you’ve already signed your mortgage at a lower rate, you will be saving thousands in interest payments. Given the rising prices of homes, being able to save any money on your mortgage payments is a significant boon for you.
Another advantage for buyers is that while housing prices continue to climb, you may find you have more equity in your new home faster than you realize. For example, if you buy a home worth $650,000 today, as demand increases and supply tightens, your home’s value will increase. So, you could end up with thousands of extra dollars in equity without having to pay anything more.
Additionally, if you’re not in the market to sell your home, you can cash in on the equity, which will likely have increased significantly over the past couple of years. Statistics show that housing prices have increased over 30 percent in the last year. There are many ways that you can use this equity to benefit yourself, such as paying off debt, helping your child pay for college, or renovating your home. In addition, it seems many homeowners are using that equity to buy another house as an investment property.
If you are interested in learning more about your mortgage options in Ontario, call Northwood Mortgage™ at 888-492-3690 or contact us here.