July saw a record number of Toronto-area homes sold, with an average selling price of $609,236 for the month.

According to Mark McClean, Real Estate Board President: “9,880 homes sold in the Greater Toronto area in July 2015, representing an 8 per cent increase from the sales in July 2014.”

According to a recently released report, the sales broke the sales record for July, a month that’s typically slower for the real estate industry. “It is important to point out that home ownership demand has been driven not only by low borrowing costs, but also by the fact that the GTA economy has been performing quite well,” McLean said in the report.

Sky High Real Estate Prices in Toronto

The TREB report found that the average sale price in the GTA was $609,236 for the month of July, up 10.6 per cent from July 2014, when the average was $550,625. Even though the average sale price reached a record high in July, prices are actually lower than the average price in June.

According to these findings, the city of Toronto is set to break the record for number of homes sold in a year, previously set in 2007. The previous record was 93,193 homes sold, with an average selling price of $327,236. With this report, TREB has recorded 64,514 sales in 2015. Records have consistently been broken across the year, with April, May, June and July all exceeding expectations. Additionally, monthly sales have been higher year-over-year every month of 2015, when compared to last year’s sales.

Expensive Condos

The Canada Mortgage and Housing Corporation have stated that a surge in condo construction pushed Canada’s housing starts figure to its highest level of the year in August, at 196,565.

We’ve all heard the stories about crazy house sales in Toronto, like the eight feet wide three storey property that features a garden, balcony and a sauna that’s currently on the market for $750,000. Or the dilapidated house on the Beaches that sold for more than a million, despite not being hooked up to hydro, with holes in the roof and animals inhabiting a few floors and just generally being deemed “uninhabitable.”

The fact is, the Toronto real estate market is heating up, with no sign of cooldown coming any time soon. According to TREB, the rate of sales growth is outpacing the rate of listings growth by a wide margin. In a release, Jason Mercer, TREB’s director of market analysis, stated: “As long as this situation persists, expect home prices to trend strongly upward.”

Tired of Living in Toronto?

Toronto has definitely lost its groove. Its no longer the jewel it used to be. As such, now is the perfect time to leave Toronto. One of the best places to live outside of Toronto is Alliston. If you’re ready to move, we at Previn Court build a home for you. With over 35 years of experience, we have built homes for over a thousand families, including detached, townhome, and unique attached single units, and we can help you find the perfect home for you.

Take a tour of our incredible models, or contact us today for more to let us know your needs in terms of bathrooms, bedrooms and budget.

If you’ve ever been looking for a new place to live, then you’ve no doubt had this question cross your mind:  To rent or to own?  It’s a loaded question and the opinions you get will be pretty divided.

The only way to really know what to do is to look at the pros and cons objectively.  Let’s examine the advantages of both options, as well as the challenges you may face.

Round 1:  Freedom

The question you need to ask yourself is how much freedom you want. When you’re renting, you’re at the mercy of your landlord.  Depending on the location and type of dwelling, you may face restrictions.  However, if you wanted to live somewhere new, moving out isn’t a complicated process – it just means waiting until the rental agreement has expired.

Naturally, buying puts you at the opposite end of the spectrum.  It’s your property and you can generally do as you please.  You won’t have to worry about someone constantly watching over you and you can make the space as unique as you’d like.  Of course, this means that you’ll want to consider the value you are adding to the home when making any adjustments.

Round 2:  Cost

If you’re made out of money, you really don’t need to worry about renting or buying.  For most of us, however, it’s a legitimate concern.  Renting can seem attractive because of the simple nature of forking over rent, whereas buying a home will be a bigger strain on your wallet and the process is much more complicated.

When comparing buying and renting, a great tool to employ is the price-to-rent ratio. It weighs the cost of purchasing a home with the annual cost of renting one.

To figure this out simply take the sale price of your home and divide it by the annual cost of renting. The resulting number is your price-rent ratio. A P/R ratio above 20 usually means that owning that house will cost you more than renting it monthly.

Round 3:  Investment

While you may feel like you’re saving by renting, you aren’t making an investment.  This is where buying has an edge.  Purchasing a home isn’t going to make you rich overnight, but since you own the property, it’s yours to sell in the future.  Any additions you make can raise the value, and as the market and your area change with time, so to does the resale value of your home.

Renting doesn’t offer the same benefits and the best you can hope for is rent staying the same.  This is the ideal scenario as many people who rent can attest to steadily increasing rates.

In the end, it’s all about what you need.  Buying may seem more costly but it’s a decision that can give you more long term freedom and stability, while renting suits those looking for a quick (and potentially temporary) accommodation.

Interested in Buying the Right Home for Needs?

If you’ve decided that buying a home is the right choice for you, the next step is finding a home that’s the right fit for you.  Buying a home is one of the most important investments you’ll ever make in your life, which will impact how comfortable your family is both in the house and financially in the future.

At Previn Court Homes, we know this decision is an important one, and we strive to create beautiful homes that will provide long term value.  Since our inception over 40 years ago, we have constructed in excess of 1500 homes in Canada, and in the process made the dreams of 1500 families come true. Take a tour of our incredible models, or contact us today for more to let us know your needs in terms of bathrooms, bedrooms and budget.

Buying new homes in Alliston and elsewhere can be tricky if it’s your first time.  Paralysis by analysis is common and for good reason – there are tons of details to keep track of.  Sometimes though, knowing the most common things people do wrong is enough to keep you on the right track.

1.  Being a know-it-all

One of the typical things people get wrong on their first purchase is trying to do too much.  Real estate websites are increasingly detailed and it’s easy to forget what realtors are for with so much at your fingertips.

Markets are complex and only an agent guiding you through it can reveal subtle nuances that may not be reflected on the online price.  Turning your back on experience only leaves room for error.

2.  Not looking closely

Ignoring your home inspection is inviting nasty surprises, period.  Homes can be filled with deficiencies, either because the home is old or because it was built incorrectly.  As time goes on, components give in to wear and tear, requiring expensive repairs.

One of the biggest benefits of buying a new home is that it saves on all the maintenance.  No matter what you do, don’t skip the inspection unless you’re okay with the eventual repair bill.

3.  Being too understanding

New homeowners don’t actually realize how important they are.  Being okay with say, a delay on your home, isn’t something you should do.  Since roughly 2006, critical home dates are now part of the contract and purchasing agreement for your home.

This means it’s not okay for builders to string you along.  Don’t forget that if you’re slammed with a delay notice you’re entitled to ask for compensation for the extension or even back out.

You don’t want to be one of the many people who waited forever on a developer with no intention of finishing on time.

4.   Dotting I’s, Crossing T’s

The contracts and agreements are the most important components of your new purchase.  Don’t just give them a read. Legal advice can save you in situations like this.

When it comes to a new home, the builders have the right to change anything including floor plans, additions, features and even keep the real square footage a mystery.  It’s important that you get everything, yes, everything, in writing.

A lawyer can confirm what you’re actually getting and help make sure the details are accounted for with no random variables kicking around.

5.  Getting emotional

Don’t let your emotions get the better of you.  If a place seems great but it’s way over budget, don’t put your financial future in jeopardy.  If you’re taking a tour of the house, don’t ruin the seller’s impression of you by complaining about what you see.

Make the right choice, right away

Whether your’re buying new homes in Alliston or further out, keep your eyes open and make the decision that best suits your needs before your wants.

At Previn Court Homes, we know this decision is an important one, and we strive to create beautiful homes that will provide long term value.  Since our inception over 40 years ago, we have constructed in excess of 1500 homes in Canada, and in the process made the dreams of 1500 families come true.

Take a tour of our incredible models, or contact us today for more to let us know your needs in terms of bathrooms, bedrooms and budget.