07 August 2018

The Monthly Outline - August 2018

We’d like to take a moment to welcome Outline Financial (www.outline.ca) as a regular contributor to our newsletter.  When it comes to mortgage options, financial analysis and real estate statistics, Outline Financial is one of the best in business and is an invaluable resource to our clients and team.

This month’s Outline statistic looks at the question - could now be the time to look at a “move-up” purchase?

As you can see from the below chart, at the peak in February 2017, the average detached home in Toronto was selling for 206% more than the average priced condominium.  This price gap has narrowed significantly and as of June 2018* sits at +124% which is below the 10-year average (+130%) and at levels not seen since late 2013.  This gap has narrowed given a rapid increase in the value of condos over the last few years, combined with a relative slow down in the detached market. 

For those seeking a move-up opportunity, it may be a great time to explore what is available in the market as the additional cost to go from a condo to detached is at the lowest levels since 2013.  A great place to start is to speak with your financing/mortgage advisor to work out the equity that you have in your home, and to calculate the closing costs and affordability of a move up purchase.

The below data is provided by Outline Financial and compiled from the “416” region of the TREB Market Watch reports from July 2008 to June 2018 (adjusted for any historical changes by TREB).

Outline Financial is one of Toronto’s top mortgage teams offering direct access to rate and product options from over 20 banks, credit unions, and mono-line lenders all in one convenient service.  The Outline team was formed by senior level bankers and financial planners that wanted to offer their clients strategy and choice with an exception service experience.  www.outline.ca / hello@outline.ca / 416-536-9559