Summer 2018 has officially come to an end and looking back on it, summer was great for real estate. In this article, we are going to do a quick recap of what we saw in the summer and what we can expect in the fall months of 2018.
We saw sales increase and ending with the month of August having a 8.5% increase in sales volume from last August. We also saw home prices increase 4.7% year-over-year this August with the average price in the GTA being $765,270.00.
This summer’s GTA real estate market has grown tighter with sales outpacing new listings and it is a sure sign that supply is not keeping up with demand. But, we are certainly not in an overheated market, which we saw between 2015 to 2017. Well, at least not yet.
In terms of rates, they held steady in the month of September but there is anticipation of more increases coming. The decision to not increasing in September has been mainly from trade uncertainty.
We have seen the stress test come in January of this year. This created varying rate scenarios that individuals can qualify for. This left the lending market segmented into price points based on credit score and loan to value, and being able to qualify under restrictive guidelines getting you better rates. But Credit Unions – who don’t adhere to federal lending regulation – were still available to offer non-stress options to those that really needed it. I expect Credit Unions to play a bigger role in mortgage lending in Ontario for as long we are dealing with stress testing guidelines.
What to consider in the fall?
It’s important that we prepare for what is ahead. Some of these things include saving for the holidays. You should try to get ahead in the game by thinking about saving for the holidays now versus putting money on your credit cards that you can’t pay off right away. It’s all about avoiding putting yourself in a situation where you’re spending more than what’s within your budget.
You can also do this by setting financial goals that you can start to implement now and continue into the new year. You’ll find that you avoid overspending in December and you’ve set yourself up for an amazing financial year in 2019. This is where cash flow planning comes in. It can get you to your goals that mean the most to you. That could be paying off debt, taking a family vacation, finally doing that basement renovation, and so much more. Why not start now and get yourself on the right track to achieve your goals as early as spring and summer of 2019. It’s really not that far off!
Enjoy the fall time activities in your community.
Call me if you need anything.