Toronto Real Estate with Mulholland | Ross

Market Trends in the Neighbourhood

Toronto’s ‘Spring’ market is in full bloom and many homes are continuing to sell quickly and at record high prices.

However, with inventory starting to creep up, home sellers will need to fully analyze their ‘competition’ (other homes for sale) and understand the buyer trends in their immediate neighbourhood to fully take advantage of what is still considered a ‘sellers’ market.

Mortgage rates went up a little; a new 5 year closed mortgage is about 4.10% and we expect to see them get closer to 5 before long. But we are still talking about unbelievably low rates and I just shake my head when I hear some news report showing a young couple stating that if rates hit 5% they will choose not to buy a home!  That’s right – they would prefer to just rent for the rest of their lives. That just doesn’t make sense.

Our sellers are seeing serious solid offers from qualified buyers; buyers who are anxious to take advantage of a mortgage rate commitment under 4%. We expect this type of buyer motivation to continue through June.

Many people are asking about what might happen with home prices when HST kicks in and the rates go up.

Keep in mind the HST will  not drastically change the cost of buying and/or selling a resale home (Realty Fees, Lawyer’s Fees etc. will be subject to the tax – NOT the price of the home.) Everything that is currently subject to GST will be subject to the combined tax

Buyers of new homes will have to take care when reading their contracts – don’t assume the builder or developer is going to pay the tax. It must be in writing, and we strongly suggest you to have your lawyer review the terms and clauses of your offer.

One thing we’ve learned during our 25+/-  years of real estate sales: Markets go up, then go down, then go up again…even higher.

The Mulholland|Ross Team have been helping families in your neighbourhood for over 25 years
and can guide you from start to finish.

Buying a big ticket item? TVs, Cars, Furniture and more will all have HST after July 1st. What will you do?

This entry was posted on Sunday, May 2nd, 2010 at 7:01 pm and is filed under BUYING INFORMATION, NORTH YORK LIVING, SELLING INFORMATION. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Part 1: 2010 Housing Market Leading Indicators, presented by Altos Research | Trends Search said at May 3rd, 2010 at 2:54 am

   [...] Market Trends in the Neighbourhood | Toronto Real Estate with Mulholland | Ross [...]

2. MarkSpizer said at May 3rd, 2010 at 5:45 am

   great post as usual!

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