Appreciation Is Strong: It Might Be a Great Time to Sell - August 13, 2020

Appreciation Is Strong: It Might Be a Great Time to Sell

 


There is no doubt that today’s housing market is changing, and everything we see right now indicates it is time to sell. Here’s a look at why selling today is likely to drive the greatest return on your largest investment.

Home values in the GTA have been appreciating for several years now, growing at a strong, steady and impressive pace. Then, with the impact of the lockdown earlier this year, there was a steep decline in the number of homes listed for sale at a time when the market is usually picking up speed for an active spring and summer housing market.

With a few months of data now available since late March 2020, the numbers show that the significantly low inventory contributed to a notable increase in single-detached housing values. According to recent Toronto Real Estate Board reporting, active listings across the Greater Toronto real estate markets were at 14,000 in June, the lowest level for the month since 2016 when active listings bottomed-out at 12,327. Compared to the same time period in 2019, the average price is up in 95% of the areas between January and June 2020. Double-digit increases were reported in 60% of the 416 area code districts and in 50% of the 905 area code districts.
 

“Sales activity was extremely strong for the first full months of summer. Normally we would see sales dip in July relative to June as more households take vacation, especially with children out of school. This year, however, was different with the pent-up demand from the COVID-19 related lull in April and May being satisfied in the summer, as economic recovery takes firmer hold, including the State 3 re-opening. In addition, fewer people are travelling, which has likely translated into more transactions and listings.” ~ Lisa Patel, President, Toronto Real Estate Board

The usual spring market materialized in June is expected to remain strong throughout the summer months as pent-up demand, low interest rates, and limited inventory headline market drivers.
   

“Virtually every housing category in the GTA, from starter homes to the luxury market, will be impacted by pent-up demand in the months ahead. Historically low interest rates with five-year closed rates as low as two per cent- will also provide impetus for the foreseeable future.” ~ Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada

Looking at the projections as they stand today, 2020 is slated to continue to drive strong price appreciation. With average home prices still on the rise, the pace at which they are predicted to continue increasing will likely soften late 2020 and early 2021.

Bottom Line

If you’re thinking about selling your house, now is a great time to make our move. Don’t get stuck waiting until projected home price appreciation rates potentially re-accelerate again. You’ll likely earn the greatest return on your investment by selling now before the prices start to normalize. Give me a call to find out how much your home could worth now at 416-522-1112.

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