The housing market is red hot! If you are a Seller, over the next few months you can expect to sell your home quickly and for top dollar. Why? Inventory across the entire GTA is at record low levels.
With not too much choice, buyers are snapping up homes anxious to cash in on record low mortgage rates. The current days on market information for
Rockwood indicates an average selling time of 15 days which is twice as fast as the two previous years.
Buyers armed with mortgage commitments at all time low rates are anxious to purchase, but without a supply of existing inventory, homes are being sold very quickly. In many areas of Mississauga, bidding wars are becoming common practice, and some sellers are receiving as many as twenty offers on their properties. This generally results in a sale significantly more than the asking price - but for every boom, expect a bust! The current prediction is that the market will remain strong until summer then cool down. In April, new Federal Government rules will stiffen the mortgage qualification criteria. By the summer, mortgage rates are expected to start rising as the economy picks up, making homes less affordable Demand is therefore anticipated to decline, and in turn the bubble will inevitably burst.
Sellers should keep in mind the effects of the new HST will undoubtedly have impact on your pocket. Commission now taxed at 5%, will increase to 13%, along with legal fees and other services. These changes will come into effect July 1st, 2010.
homes have shown the strongest gains, with semi’s and links increasing in the 10% range.
It would seem that in this hot market, home prices in Rockwood would also be soaring, however, a four bedroom home actually decreased in 2009 from $574,428
in 2008 to $566,350. Sales of four bedroom homes in 2010 are currently averaging $570,250.
*Please note this article was originally published in the Spring 2010 edition of The Rockwood Times.