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GTA housing prices are up, have you been tempted to sell?

February 25, 2021 | Homeowners

With the 2020 housing market finishing strong, it is no surprise that 2021 started with a bang!

Following an unprecedented year of real estate,  the GTA is poised to have a record setting year in 2021, with the overall average price for all home types on track to pass the $1 Million mark for the first time.

While GTA housing prices are up, many homeowners are seeing neighbouring houses sell far beyond what they had thought their own home was worth, prompting them to wonder if they should take advantage of these attractive sale prices and cash in.

While the lure of $200k over ask sales can be extremely tempting, it is important to consider multiple factors before the for sale sign goes up!

It’s all relative.

If you sell your home in a peak market , it is important to remember that unless you are downsizing, moving to a different town with lower costs, or selling to rent; whatever you purchase next will also be in a peak market. Pricing is relative to the market across the board.

Whats your motive?

It is important to remember that one factor driving price, is high demand and low inventory. Know that if you sell because you know you can make a good profit, but don’t have a purchase already in hand, you will be hunting a market that favours sellers and lacks inventory. Unless you have a home that makes you want to sell, know the risks of selling before you buy. It could be a longer journey to find that next home than you think.

Are you willing to work?

One way  that you can approach this market if you’re looking to put some money in the bank; is to sell a finished, updated home, and purchase something that needs work. If you can sell high enough that you can buy a home with potential and your after repair value exceeds your expenses to spruce it up, you could just cash in and have a fresh new space.

Cashing in without moving out.

So you have heard that we are in a strong seller’s market, but you love your home and you don’t have any interest in moving. A strong market can also be beneficial to homeowners that aren’t looking to sell. While interest rates have never been lower ( in recent history) and GTA home prices are at an all-time high, now is a perfect time to grab an appraisal and refinance. If you have thought of investing in an income property, or you’re looking to expand your portfolio; you can pull out  up  to 80% of the equity in your home and reinvest. Talk to your mortgage broker to find out what possibilities the equity in your home can provide for you + your family.

There are many benefits to selling in a strong sellers market, but it is important to consider all factors and have a plan from the beginning.

While the market may find itself more balanced as we progress through 2021, we can’t anticipate it slowing down anytime soon.

“Looking ahead, a strengthening economy and renewed GTA population growth following widespread vaccinations will support the continued demand for both ownership and rental housing. But over the long run, the supply of listings will remain an issue…” Predicts TRREB Chief Market Analysis, Jason Mercer.

Home sales are expected to reach near- record numbers due to strong sales growth, supported by continued economic recovery, including jobs and record low borrowing costs.

Do you have questions about the market, or whether selling now is right for you? Email us at [email protected] to schedule a one on one session.