Some homebuyers are seeing appraisals come in lower than their purchase price. Average prices for homes have been trending down over the past few months. In May, the average home price was $711,316 – a 4.6% drop from April and a nearly 13% drop from February. Ontario home prices could drop up to 18%. Appraisers consider several factors when calculating the value of a home – the home’s construction cost, size, features and previous selling price. Other factors include higher interest rates, an area’s local economy and immigration levels play a role as well.
What to consider : brand new or resale condo?
Brand New (pre-construction) units may feature lower prices
than resale units
- greater choice of units
- upgrade choices (within your unit )
- can’t inspect the unit before you buy it.
- your initial deposit may be “tied up” / delays during construction
- may have to pay “occupancy rent” / may be difficult to get a mortgage until condo registered
Resale: older condos usually feature larger units
- can inspect the unit you want to buy.
- you should not have to wait long to occupy your unit
- lower deposit and getting a mortgage should be easier
At the same time:
- fewer units to choose from
- older units may have higher maintenance fees (more repairs/replacements)
The rapid rise in interest rates seen over the past few months is causing concern for prospective homebuyers. Those who are likely to buy a home or condo in the next year are worried that rising rates will impact how much home they can afford. Inflation concerns include not just rent but food and gas prices as well.
Deciding to buy or rent – home or condo… a lot to consider and think about what to do.
For over 20 years, Huron Shores Property Management has specialized in managing condominium complexes across Southwestern Ontario from Windsor to London. Looking to hire a professional condominium management company in Windsor Essex? Contact us for a no obligation consultation meeting today.