If you're thinking of relocating your family or your business you'd be well advised to do your research into the market conditions in the area first. By knowing what the real estate market has done before, what it's like now, and how it can be expected to behave in the future, you can get a better idea of whether it would be better to contact a financial expert to see about keeping your current house or to start looking for properties. We'll give you an overview of the past, present, and future so you can make a decision.
It's no big secret that the last few years have been tough ones on many North American real estate markets. The double blows of the sub prime mortgage crisis and the recession have caused prices to drop sharply in many areas. The results have been an increase in foreclosures, a decline in sale values, and an increased number of people deciding to wait to sell their properties. In some cities real estate prices were halved. Although London suffered during this period, it was not as badly affected as cities in the United States.
Now that the government is turning its attention toward helping the economy to recover, the real estate market in London is slowly recovering. For many cities it was years before house values started to rise again. In fact, mortgage brokers in Toronto are enjoying a bubble, or boom, in prices. Things in London are progressing more modestly. Statistics for the first quarter of 2010 show that prices in London have increased between 4% and 12.5% in the last year depending on the type of property.
With economic recovery progressing, London's property prices can be expected to continue their climb. Contrast this with the expected trends in Toronto, where real estate organizations like Royal LePage Real Estate Services Ltd. are predicting the bubble 25%+ growth rates in parts of Toronto is poised to burst, and you may actually be better of buying in London. While you could stand to gain more by speculating in real estate in Toronto, London's steady growth is much safer.
What these statistics mean for you, the home buyer, is that now is a good time to buy, and London is a good place to buy. So tell your real estate agent you are bypassing the bubble-inflated prices in the GTA for the more reasonable rates in London. You'll still get your resale value, but you'll have a little more time to make your decision before prices jump out of your range.