There is lots of discussion in the Media about what is happening in the Real Estate Market today! The assumption is that the number of new listings means the “Bubble has Burst”, that new mortgage rules are reducing the number of Buyers in the marketplace and that the HST is forcing people to buy before the July 1st commencement date….A lot of negatives but where is the reality?
First….know that with a warm Spring and a beautiful garden, comes “FOR SALE” signs. It happens every year throughout the Toronto Real Estate Board and the number of Sellers in the past few weeks is a normal occurance.
Secondly…the “New Mortgage Rules” used to be the norm a few years ago till the Banks started competing for new clients and loosened up their rules.
Thirdly…the HST only affects the services that are used during the sale of a resale property. The HST is only on the price of New Construction in the same manner as the GST and because many of the builders will be paying HST during the building of the New Construction, they will be available for rebates at the time of closing. There should be no rush to sell a resale home because of the HST.
Fourthly…the increase in Mortgage Rates is definitely something to watch. The higher the rates go, the less people can afford to pay for housing. However, as the Rates go up there may be a rush for Buyers with pre-approvals and held rates to buy homes.
Don’t get caught up in the negative media. It is always out there and will continue.
In the meantime buy a HOME…that is the place where your family congregates, you entertain friends…..take a long term approach to building equity!