Wondering if 2017 is the perfect year to sell your home? The first step is clearly laying out your goals. Why is it that you want to sell? What do you plan on gaining from moving homes? The reasons for selling are almost endless. Here are a few examples of common goals:
- Work Opportunities
- Location Change / Change of Scenery
- Capitalize on Investment
- Home Flipping
- "Just want a house that you can fall in love with"
- Escaping city life
- Annoying Neighbours? Etc...
You can only start looking at how current and predicted markets will affect you after you have taken the time to decide on what your goals are. The effects of a strong growing market, a slowing market, or even contracting market will differ depending on your goals. A Licensed and professional Realtor can help you analyze current market conditions and should be able to help you identify trends. However, like any market, there’s still an underlying unpredictability. Some experts have already weighed in with their predictions for 2017.
What are the economic experts saying?
1. Douglas Porter, Chief Economist, Bank of Montreal
“A tidal wave of millennials, now entering their prime home buying years, is about to wash over the housing landscape. According to one study, nearly 40% of young persons (age 18-34) live with a relative, the largest percentage since 1940. Easing mortgage standards will slowly open the housing door for this cohort, with an extra nudge from rising rents (and nagging parents).”
2. Beata Caranci, VP & Chief Economist, TD Canada Trust
“We have elected to upgrade our forecast of sales and prices in the Toronto and Ontario markets in 2017. The upgrade reflects the more robust momentum heading into the year, which is still likely to break but probably not until the second half of 2017 and into 2018. Of note, there appears to be some flow-through of foreign funds into the Ontario market, perhaps diverted from its western counterpart due to their targeted policy measures. This may reflect a push of foreigners parking funds ahead of speculation that China may consider implementing more stringent capital controls sometime in the New Year. Despite prospects for weaker sales down the road, limited supply will keep the market quite tight allowing for further price gains.”
3. Canadian Real Estate Association
The national average price is forecast to decline by 2.8% to $475,900 next year, with modest price gains near or below inflation in Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia, together with small declines of a similar magnitude in Alberta, Saskatchewan, Prince Edward Island and Newfoundland and Labrador.
What could affect the expert’s predictions?
1. The Trump Card
Maybe you know what trump means in a game of Euchre but we are all waiting to find out what the trump card means for Canada’s Housing Market and the Global Markets at whole.
2. Interest Rates
The housing market relies heavily on Interest rates but we can’t know with certainty if the Bank Of Canada will make any increases during 2017. Although banks have made changes to the rates they are offering on mortgages, there are no economic indicators insisting interest rates will drastically rise in 2017.
3. Policy Changes
New Mortgage Rules and Foreign Buyer Taxes were some of the big policy changes we saw in 2016. What sort of changes will be introduced in 2017? How could they affect Home Buyers and Sellers? Remember, it’s not just our government making new policy changes that we have to keep in mind. Foreign investment now plays a more substantial role in our housing market and changes made by other governments could impact us as well. For example, China has already added new restrictions on pulling yuan out of the country as authorities seek to prevent a flood of capital outflows.
So, you’ve taken a closer look at your goals, you’ve heard what some economists are predicting and you’ve made note on changes to be on the lookout for. Now you want an answer. Should I stay or should I go? The truth is, if you’re interested in trading real estate strictly for investment goals, you’re going to want to dive deeper into analyzing the market and continue to do so on a daily/monthly basis. You must also keep in mind that no investment will ever be risk free, so weigh your options and be ready to take some risks. However, if you’re goals are upsizing or downsizing or just looking for something new to love than the answer comes down to a simple question, Are you ready for the change? If you are buying and selling (in a similar location), the market will have little affect on your trade. For example in today’s market you’ll likely sell for a great price but have to spend that little extra in order to get the home you want. During a market downswing it may take a little longer to sell and maybe you won’t get the same as you would selling today but you’ll also likely pay less for the home you want. It all comes down to whether you’re truly ready to sell and move on to the next chapter in a new home.
Ryan Thomas is a licensed Realtor serving the Durham Region and the GTA. If you’re ready to buy or sell or would like to further discuss the ever-changing real estate market, contact Ryan today!
Ryan Thomas, Sales Representative at Coldwell Banker 2M Realty Brokerage