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Real Estate Market versus First Time Home Buyers

 Current Real Estate Market trends

The Greater Toronto Area (GTA) remained highly vulnerable to market influences. Despite the fact that existing house sales are beginning to slow and pandemic-induced buying activity is fading in the second quarter of 2021, the demand-supply mismatch in the Toronto market for existing homes has contributed to the continuation of price acceleration.

"Extremely Strong demand and house price rise during the pandemic may have led to heightened expectations of ongoing price increases for buyers in numerous local real estate markets across Ontario and Eastern Canada," said Bob Dugan, chief economist at CMHC. "As a result, more investors may have entered the market than was Expected."

In the regional housing market, there is no evidence of surplus inventories. This implies that there aren't an abnormally large number of unoccupied, freshly constructed, and unsold housing units. Furthermore, the rental apartment vacancy rate is not considerably higher than average.

How to Stay Calm in a Hot Housing Market for First-Time Homebuyers

Don't make a hasty decision that you can't afford. It's perfectly fine to wait until you find something that's perfect for you.

It's a huge decision to make, and it may be a bit intimidating. However, one way to avoid becoming worried by the disruptive housing market is to work with a knowledgeable agent with Yes Realty. So, when you're willing to make that decision, you'll be doing that with the assistance of expert agents. 

An adviser can walk you through the complete system and put you at rest by advising you on how much you should save for the pre-approval phase and which type of mortgage is ideal for you.

While the market is frenetic right now, there's no need for first-time homebuyers to worry; you simply might have to be flexible or alter your home choices. Meanwhile, you may practice so that when the time comes, you'll be ready and able to step in.

Things to consider for First time Home Buyers

It's fine if you haven't begun saving yet. Simply go through your finances and see how much you can save. In addition to your deposit, keep in mind that you'll need three to four percent of the value ready in cash for closing charges such as property transfer and legal costs. To get to this figure, first max your tax-sheltered accounts, such as the TFSA and RRSP. If you want to accept a loan from your RRSP under the Home Purchasers' Plan, keep in mind that there is a maximum release of $35,000 and that it is only available to first-time buyers. You'll also have to pay back the loan over the following 15 years.

When you've saved enough money for a down payment, it's an opportunity to contact an Agent (Yes Realty Inc.) and a Mortgage advisor to determine how much you qualify for. You may also begin looking for houses with a unit you can rent out. If you want to buy a property with a rental unit, your pre-approval value may be increased. Check with your advisor to see whether this is a possibility. It is necessary to research and see as many properties as possible in order to feel confident in your decision.

You simply have to be clever and avoid getting caught up in the rush. There is a natural way for the real estate market to settle down. Yes Realty always encourages people to buy within their means.