June Home Sales Update

June brings us to the end of the second quarter as well as the end of the first half of the year.  This is also one of the telling points since it is the height of the home real estate market.  In the Greater Toronto Area, sales are higher than they were last year at the same time.  This is despite the bind many buyers are experiencing with interest rates still pretty tight.  Consistent with previous months. However, the sales in June were lower than in May.  The adaptability of the Canadian population appears to be the reason for the higher sales, even in a tight lending economy.

The demand is there, but the supply is somewhat lacking.  Shoppers are finding properties but not necessarily meeting their needs or wants.  So, while sales are up over 16% from last year at this time, the listings were down 3%.  While selling prices are up a bit, the benchmark remains down by nearly 2%.

Addressing the Housing Crisis

The population continues to increase, and local governments and builders are struggling to keep up with the need for housing.  However, the reality is that the new builds cannot keep pace at this point. Sadly, without some fast footwork, the disconnect will continue.  Adding to the problem is the issue of the fees and taxes associated with construction. 

So the potential buyer is looking at a market of slim availability, tight lending practices, and rising ancillary costs.  The fear is that people who want to buy will be unable to achieve that goal.

Encouraging Homeowners to Act

Possible solutions include convincing current owners that the situation will not improve in the near future, and if they are truly interested in selling their property, they should hop off the fence and list their home.  If the property is in good shape and located in a favourable neighbourhood, and with a little patience, they can sell the property at near asking price instead of continuing to pay taxes and upkeep on a residence they would like to move away from.

Another option is to address buyers’ concerns that the interest rate is unlikely to resolve itself within a reasonable amount of time.  However, the longer they wait, the less likely they are to qualify for a mortgage with terms they can live with, even for a five-year fixed rate.  A careful review of budgets can mean that a new home will not happen any time soon, and it may be in their best interests to move on a good deal and then refinance at a later date.

Navigating the Housing Challenges

These are all legitimate concerns that can have a serious effect on family life for several years.  A good place to start is a discussion with a professional who works with these issues on a daily basis.  A reliable source is easyhouseloan.ca.  They have a reputation in the industry and have contacts with a wide variety of lenders that can make buying a good home more viable than it would otherwise seem.  A conversation can bring clarity to an otherwise confusing situation and can help you come to the best decision possible in your individual circumstance.