10 Nov Market Notes: interest rates march upwards, demand remains high.
The latest sales stats for October came out last week in line with expectations: the downtown real estate market continues to have an inventory issue and as such, remains competitive. Although interest rates have marched upwards, demand remains high.
If I am seeing any weakness, it is that buyers are a tad less aggressive. With Toronto’s strong economy and desirable nature, I don’t see the inventory issue going away over the short term, but I do see appreciation growth subsiding. The most unique homes with solid fundamentals will outperform the market, making it important to choose carefully.
Location is the first fundamental, but if you need to compromise on location to purchase a property, look for a developing neighbourhood, preferably with nearby retail and parks. If you are not going to live exactly where you want, try to make up for it in other ways. I recommend putting the budget towards a character home that you can add value too. In addition, look for lot size, parking, semi or detached homes. Don’t translate lifestyle and property prices in one neighbourhood to another neighbourhood with different values. That is how you end up overpaying or never finding what you want.
-Nick, Nov. 9/2018