This article is also available in video blog at my video blog.
There are 5000 sales reported through MLS in this January. This result represented a large increase over the 2,700 sales in January 2009 when the home sales were in a recessionary low.
The average number of new listings are still significantly lower than the previous years which continuously driving up the sale price. Bully offers and multiple bids are still common in downtown Toronto.
The affordability index indicates 2009 is very close to what we had experienced between 1996 to 2006. Although it seems to be a healthy index, be aware of the fact the average sales price has been doubled from $180,000 to $360,000 over the past 14 years. And remember the interest rate in 1996 was about 8% which is more than 3 times of our current prime rate. And what about your salary? Has it been increased by a double?
As a buyer, we should be concern with this teaser rate that we have right now. A variable rate of prime minus 0.3% is not going to last forever. So, budget carefully and be prepare the interest rate will go up at the second half of the year! If you have any questions with regard to real estate, please don’t hesitate to contact me at simsonchu@chestnutpark.com or visit my website at http://simsonchu.com/
Important to get yourself a pre-approval!
In Toronto, Canada, mortgage financing has been tightened recently. It is important to arrange your mortgage first before even searching your home.
Canadian Buying in U.S.
Canadian should do some research before jumping into buying in U.S. As long as you are aware of the fees and sales tax, it is a great investment years after years.
Real Estate Marketing Strategy
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