Four reasons for investors to sell now!
Courtesy of Wayne Pasco
April 07, 2010
HST - Comes into effect July 2010, will PUSH many buyers to action prior to its implementation. Granted, this tax does not effect re-sale housing (although most buyers think it does) but for new home buyers “watch out”. All sellers will see an increase in the tax on things like real estate commissions etc.
Rising interest rates - As rates increased last week and buyers scrambled to secure rate locks. In most cases buyers have 60-90 days to buy.
*Supply - while the supply of quality, well-priced Condos is still relatively low, this trend has changed "significantly" with a 94% increase in the number of new listings (westside condos) to the board during March over Feb 2010! Further, once these “motivated” buyers purchase in the next 90 days or so the gap could widen even more quickly. Also, one should consider “DOM” days on market seems to be increasing from a few months ago. This is one to watch closely.
Vacancy rates – The post Olympic effect on rentals has seen a glut on the market, especially furnished rentals downtown. Rental rates have come off, although I believe that this trend will be short-lived especially if more buyers are forced to the sidelines with rising taxes and mortgage rates.