Unlocking Homeownership With The New First-Time Home Buyer Incentive
Canada's new First Time Home Buyer Incentive is designed to financially assist first-time home buyers without adding additional financial burdens, and is already helping thousands of Canadians purchase their first home. There are no additional monthly payments, which reduces the carrying costs associated with home ownership. Through this incentive, the Canadian government provides 5% to 10% of a first-time buyer's purchase of a newly constructed home, or 5% for a purchase of a resale home or mobile home. The financial aid provided is to be used towards the down payment for the home. The incentive must be paid back to the government in full after 25 years or when the home is sold. The program works as a shared equity instrument. If the home appreciates in value over time, participants would owe the government the full incentive amount plus a maximum gain of 8% per annum on the incentive amount. If the home depreciates in value, participants would owe the government the full incentive amount minus a maximum loss of 8% per annum on the incentive amount. To be eligible, participants must meet the following criteria: Total annual income less than $120,000 (or $150,000 if purchasing in Metro Toronto) The total borrowing amount is no more than 4 times your annual income (or 4.5 times if purchasing in Metro Toronto) Must be a Canadian Citizen, permanent resident, or non-permanent resident authorized to work in Canada Must meet minimum down payment requirements without borrowed funds The mortgage must be greater than 80% of the property's value and is subject to mortgage loan insurance Only applies to residential properties with up to 4 units The participant must live in the property as their primary residence If you want to learn more about this incentive, reach out to me. As a first-time home buyer, it is essential to have the right guidance by your side.
December 2023 Real Estate Market Update
2023 was an interesting year for the Greater Toronto Area real estate market. With a slow start to the year, followed by an uptick in activity in the Spring and Summer, and steadily declining demand and prices to end off 2023, this past year presented an ever changing landscape for buyers and sellers. The total number of home sales in 2023 totaled less than 70,000 in the Toronto Regional Real Estate Board; a record low in recent years. This is down about 12.1% compared to 2022, and down a stagering 45.8% compared to the record high in 2021. The low amount of activity is mostly attributed to affordability issues created by high interest rates. However, housing demand in the GTA still remains high. Most housing demand in 2023 was pointed towards the rental market, as Canada reached record immigration in 2023. 2023 prices saw a decline of 5.4% compared to 2022. Prices have edged slightly lower or remained stable in most markets from November to December 2023. Average days on market continue to increase across all markets, now sitting between 40 and 60 days. Buyers in 2023 benefited from more choice, higher negotiating power, and lower selling prices, which has somewhat mitigated the impact of higher borrowing costs. Most experts believe that the real estate market is currently at its lowest point seen in recent years, and shortly, consumer confidence will strengthen which will result in more activity and rebounding prices. As interest rates begin to come down in 2024, we can expect tighter market conditions. If you are planning on buying, selling, or investing in 2024, reach out to me. In this constantly changing market, it is important to have professional guidance on your side. To see how prices have been affected in your area, please click the link below to get access to TRREB's December Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos. https://trreb.ca/files/market-stats/market-watch/mw2312.pdf If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below. https://calendly.com/davidrizzuto/consultation-call?back=1&month=2023-05
The Advantages Of Selling Your Home During The Holidays
Many home sellers are hesitant to list their homes for sale during the winter, and especially during the holidays. Historically, the winter months are a slower time for real estate. Many home buyers often like to start shopping in the spring, as they are too busy during the holiday season to look for a new home. Some home buyers prefer to buy in the spring so that they are settled before the next school year begins. Some buyers simply cannot find the home they have been looking for during the winter, so will hold off until spring. While this is reality for a lot of buyers and sellers, there are still a variety of benefits associated with selling during the winter holiday season. First of all, the biggest advantage of selling your home during the winter is low housing inventory. Generally, most would-be sellers tend to wait until the spring to list their home for sale. Many sellers believe they can get more money if they wait until the spring, since there will be more buyer demand. However, since there are typically few homes on the market during the winter months, sellers will face less competition during this time compared to the spring, where there are typically many more homes on the market. Less inventory means buyers have less homes to choose from, which could translate into a lucrative sale in a shorter period of time. Another important reason why the holiday season may be a good time to sell is because there are more serious buyers. Buyers that are looking for a new home during the winter months are most likely serious about making a move, and not just browsing. Those that attend open houses or book private tours during the winter are not doing so for fun or out of curiosity, but probably because they are serious about buying. For many reasons, buyers may be looking to purchase during the winter in order to meet an end of year deadline, since they have already sold their home, or because of family or personal matters. Overall, there may be less eyes on your home during the winter, but those that are looking will no doubt be more serious about actually buying. The third reason why selling your home during the winter may be a good idea is because of the festive decorations. Homes that are decorated for the holidays tend to give off a warm, inviting, and cozy feeling. By adding extra charm to your home, buyers may become more emotionally attached to your home. A home that is well decorated for the holidays will show better and help potential buyers envision their family living in the home. Also, the neighborhood and surrounding community may also leave a good impression on potential buyers when they are dressed up with festive lights, trees, and decor. Many sellers fear that their home will sit on the market unsold if they list in the winter, or that they would face a lower selling price. While it is true that December is one of the slowest months for real estate, there are clear advantages for sellers if they decide to list during the winter. March to July are typically the busiest months in the real estate market, but they are not always the best months to sell your home. If you are looking to sell and are unsure about when the best time is to do so, reach out to me today for expert guidance.
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