5 Reasons to Sell Your Toronto Area Home in 2017
Time to cash out? 5 reasons to sell your Toronto Area home in 2017
Toronto’s Real Estate market has been on what seems to be a never-ending joyride. Many who predicted a crash have repeatedly been proven wrong, and in fact, the opposite has taken place as recent year/year appreciation is in the 20%+ range. Even condos are starting to see accelerated appreciation up 14.5% across the GTA in January. Price appreciation for condos seems to be even stronger in February, a property segment that until recently was a sanctuary for Buyer’s looking to avoid multiple offer situations. Supply seems to be down by about 40% in the 416 area while demand remains relentless, despite this lack of inventory. These tight market conditions are likely to favour Sellers through 2017, so is it time to take advantage? Well, if you are just getting settled into a career and life in GTA, you obviously wouldn’t, but depending on your situation, I can see why people are starting to consider selling.
While I think there are a number of reasons why Toronto continues to be a very appealing Real Estate investment, here are 5 reasons you might want to sell:
- Lifestyle Changes. For some, it’s not necessary to live in, or close to, the city anymore – kids have gone away to school, you only have to be in the office once a week, you’re retiring…whatever the reason might be, if you could live somewhere else and can maintain or improve your quality of life, maybe it’s the right time to cash out. Did you know that for the same price as an average GTA area home ($709,000) you could own a home in the Greater Montreal Area($365,000) and Guelph ($311,000) and still have money $33,000 left over for that new car?
- Further Government Intervention could impact future price appreciation. Despite prolonged low interest rates, Toronto’s affordability is going to get worse this year, and if we continue to see appreciation at Vancouveresque rates, our Ontario and/or municipal government might decide to step in. Selling before this happens could be beneficial to your bottom line. In Vancouver, for instance, January 2017 sales are down 40% from 2016, and prices are starting to be impacted – values were down 3.7% from 6 months ago, but still up 15% compared to January 2016.
- If Toronto prices keep going up, surrounding communities will also benefit. Canadians want to own their home, and as both purchasing and rental affordability becomes a bigger issue, people will start looking at alternative communities to live and work. So if your sole reason for not selling your Toronto home is because you don’t want to miss out on Real Estate appreciation, you can expect GTA appreciation rates to spill over to smaller more affordable communities.
- You own multiple properties. While Canadians are quick to blame foreign investors for the rise in home prices (and yes, there may be some truth there), we should also look at how many of us own multiple properties and if each is being used to its full potential. If you’re an empty nester with a 2500 sqft home, you might be finding that it’s too big for your needs, and not cheap to maintain. If this is the case, and you have the option of moving to your smaller investment property, or re-locating to your cottage property, now might be the time.
- Because everyone who is anyone expects prices to continue to rise in 2017. When compared to other world class cities like New York ($1,450/square foot according to Trulia), Toronto still looks reasonable. Based on the economics of supply and demand, prices seem certain to increase. However, current appreciation levels are well above the norm; so is the demand sustainable, or are Buyers purchasing simply because the expectation is for prices to increase? Whatever the reason, 2017 is shaping up to be a good year for Sellers.
Thinking of Selling? Have any comments or questions? Shoot me an email at andrew@relativerealty.com.
