The sales and pricing numbers continue to show substantial growth across the City. While overall sales showed a 17% increase in sales from the same time last year, condominium apartment and townhouse sales totaled 466 units in January, a 33 per cent increase over the same period in 2013.
The lack of inventory is making it tough to find homes for some buyers especially under the $500,000 price point. With less than two months of inventory for single family homes and very small numbers of homes in some areas, folks are responding in big ways.
With our rental market remaining very tight, the low interest rates for mortgages and a growing city, the push to find homes is driving up prices. Multiple offer situations are becoming more and more common and may be the reason we are seeing more townhome sales just due to pricing and availability.
While multiple offers get folks fired up, it is essential that you have the information you need to not go beyond your own risk threshold.
Banks still rely on appraisals to determine how much they will lend on a property so even though you are willing to spend an extra $20,000 to get that house, the bank might still only lend on a lower appraisal value. Going forward without a financing condition can be very risky. Home inspections and review of condo documents are very important items of protection for buyers. It is in these markets that sometimes properties get purchased that would be passed over in a slower market.
The interesting thing is that I am noticing the lenders tighten up their review of each and every file. Get that paperwork ready as your bank is going to want to see it all.
Need some guidance so you feel comfortable about your move? Give me a call.