People who have been saving and looking to buy a property in the Greater Toronto Area (GTA) must weigh the pros and cons of when to start the process. Buying property in the GTA has historically been a healthy investment. In 2019, it means figuring out if the time is right based on the market and your financial situation.
Let’s review why 2019 is a good time to buy and why the first two quarters could make the most sense.
It seems that the average price of a home has dropped in the GTA since the start of the year. This means that buyers could find savings, avoid bidding wars or can consider certain properties that were once off-limits due to price.
This is most likely the result of the Ontario’s Fair Housing Plan and interest rate hikes. Keep in mind, with a new PC Government in power, things are bound to change so if you’re looking to buy in 2019, sooner might be better.
Demand Over Supply
GTA has been experiencing a supply issue over the last year. This has been most noticeable in midtown and downtown Toronto. The situation might not improve in the next year or two so it makes sense to start shopping. If you find a place you like, then there is little sense in waiting to make an offer.
Less inventory means less options and with the insanity of the rental market still impacting GTA residents, you should jump at the chance to enter the market.
Your Financial Situation
The biggest factor in buying a home in the GTA this year is your own financial situation. Whenever you buy you want to make sure you can afford all the upfront costs and then comfortably carry a mortgage.
Do you have the following?
- A steady income that can carry a mortgage plus any household maintenance fees.
- A down payment of at least 10%
- Closing fees (roughly $5,000)
If so, then you should consider buying a home. Your own financial situation should always trump a housing market that will always be susceptible to outside influence.
Even in a seller’s market, there is value to be found.
Looking for Mortgage Pre-approval
If you’re ready to buy, then contact us to start your mortgage pre-approval process. We’d be happy to answer any questions you might have and help you take your first step toward becoming a homeowner.