Quite possibly the first thing you have to consider when buying your first home is: how is the market? It’s not quite such a simple answer. It can be overwhelming to figure it out, but it’s something that’s necessary to know. This information could potentially save you thousands. The “housing market” is such a broad term, the first question you have to answer is which market specifically. Every region has it’s own highs and lows that are ever so particular due to an array of influencing factors.
Timing is key. The market ebbs and flows with the seasons. During the winter, it’s in a state of hibernation. When spring arises it begins to blossom. People don’t want to buy a home in the winter. Follow the spikes and dips of the rates if weather is a factor.
The laws of the land are also a big contributor to the market. For the GTA, there is the Ontario Fair Housing Plan and the Non-Resident Speculation Tax if you’re outside of the province. You can easily research the laws and by-laws by region if you visit the official provincial and municipal websites. Because of the Non-Resident Speculation Tax (essentially the Foreign Buyer Tax) it confused and dissuaded so many potential home owners that the market took a noticeable hit. New laws always have a strong impact on which way the market leans. B20 slowed down the rate at which people would buy houses in Canada. It was in place to aid the consumer, but it also perplexed so many that it turned too many away.
Sales volume is also a necessary factor to consider. The Greater Toronto Area has been experiencing a strong incline for years. The condo market has doubled from 2017 to 2018. You need to focus on the trends that are specific to your area. If interest is high then the rates increase, less interest will result in a lower price. It’s more of a preference if you want to hop on or not. You have the opportunity to look into areas that are blossoming if you pay close attention. It’s going to cost you more to join the popular kids then it is to be a trendsetter.
You must also pay attention to what aspect of the real estate market you want to hone in on. Are you focusing on condos, detached, or attached houses? This industry is very particular as the different subsects move along at different paces. The average rate of different types of homes can alter by over $100,000 in a single year. One may increase while the other decreases. Pick exactly what you’re searching for and it will simplify your quest.
The market can dip and rise in an instant. Real estate is such a fickle thing. What you need to do is pay attention to all of these factors and make your decision the instant all of your necessary requirements are to your benefit. Asking how the real estate market is not an easy answer. All of these factors go into this question. If you utilize the news, do your research, be precise about your location, see it as an investment and focus on your vision you will come out on top.