I am not here to tell you that it’s a great real estate market, therefore BUY, BUY, BUY or SELL, SELL, SELL. I think that you need information to make a good real estate decision.
Here is some information so that you can make an informed choice, if you are buying a home, or needing to put your home on the market:
The average price in the Greater Toronto Area for all of 2008 was $379,347. This is up from the average price for 2007 of $376,236.
You might be thinking that that isn’t much. And it’s not. But if we were to straighten out the bumpy road of house price increases over the last 20 years, we would see a 4% increase each year. This small increase is a flattening of the line to make up for substantial gains made in the last few years.
Since April 2008, there has been a decline in the average price of homes sold. In April, the average was $398,687. In December, it was $361,415.
Say what you want about averages, that doesn’t look pretty. The thing is: I don’t know many people who bought a house in April and were looking at selling it in December. The people that do are the flippers, and I am sorry about your loss.
The real estate association did a study that states that, on average, people move every 5 to 7 years over their lifetime (it’s an average, remember).
So let’s look at what has happened to your house price since you moved in say, 5 years ago.
In December 2003, on average, a single family home sold for $284,955. Now it is selling for $361,415. That is a 26.8% increase in your tax-free net worth. An average of over 5% per year.
Remember that home ownership is a secure tax-free system of saving money and building net worth. And, with the average Canadian saving less than 1%. Real estate is a great investment.
Call me to find out if this is the right time for you to make a move.