Thank for joining me.This is my first blog of 2016, so let me start by wishing you a very Happy New Year.
Over the past few months you may have seen headlines in the news of media trying to predict the future of the real estate market. I believe that we live in a time where people in general are immediately aware of the state of the economy and I would say the real estate market in particular. Here are a few examples of what we hear in the media about the real estate market:
Canada’s real estate boom will come to an end in 2016, CMHC says
Canadian real estate market to slow in 2016 – moneysense magazine
Housing prices to cool starting in 2016 and beyond – TD Bank
This may have you running for the hills. Keep in mind that general statements are derived from overall national stats. Local conditions can be very different – much like weather across our great nation. We are very fortunate to live in an area of the Country where real estate has seen steady and oftentimes stellar growth. New Downpayment rules will come into effect in Feb of this year. Interest rates are low and steady for now and not expected to rise till the end of 2016. However, watch for interest rates in the US as this will put pressure on mortgage rates rising here. All of this will have an impact of our ability to make decisions about real estate.
My suggestion is to be aware of your hyper local market conditions. For example, the average price of homes appreciated by12.4% in Mississauga over the past 12 months. The current inventory level for Mississauga is around 1.7 months. This number is derived by dividing the number of homes available with the number of homes sold in the past month. This is a key indicator of strength and rise or fall in prices. Of course when you’re in the market, it is very important to know these trends right down to the type of home and your neighbourhood.
I am committing to covering more of the market in the coming weeks. So, stay tuned.
And once again, have a very happy new year. If you have any questions about real estate and the hyper local market in Mississauga, Oakville, Toronto or West GTA please give me a call or email me.