How much are you saving?
Year after year, I hear many people tell me that their plan is to save a little bit more in order to afford that bigger, better condo or house the following year.
It seems as though no one wants to buy what they can afford right now. They just want something a little bit better.
Then next year comes around and the prices have increased. It’s as though, someone magically moved the goal posts further back. Then new mortgage rules come in which move the goal posts that much further back.
23% increase in price
Last year in the City of Toronto, The average price of a condo in the 3rd quarter of the year was $440,312. This year the average price of a condo in the third quarter is $542,492. That represents a price increase of 23% or $102,180.
So it begs the question; did you save an extra $102,000 this year to keep up with that price increase? Will you be able to save that amount of money next year when the condo prices go up again? If not, by the time you finish saving for that bigger, better place, you’ll be looking at a smaller and smaller condo. Which, of course, leads me to say, if you’ve been sitting at the sidelines of the condo market hoping to save more money and you have at least your 5% down-payment saved, it’s definitely time to jump into the market before the goal posts move any further away from you.
Now let’s look at what’s happened in the housing market.
Despite everything that you read, the market has come down since March but it’s still up year over year. So, the average GTA semi detached house sold for $948,683 this year. In 2016, $840,594 was the average price. So a 12.8% increase which translates to $108,089.
So did you save an additional $108,000 this year? Can you save that amount next year?
I know it all sounds a little harsh doesn’t it? But unfortunately it’s the truth and the numbers don’t lie. So if you were ever thinking of taking a dive into the housing market and you have the minimum 5% downpayment saved, now is truly the time to get into the market before the end of the year when the goal posts move that much further away.
I have a great mortgage broker I can introduce you to to make it happen so please let me know how I can help you get into the market now before the goal posts keep moving further and further away from you.