If your clients are looking for a home, there’s a good chance they need your help.
That’s because almost all Canadian homebuyers (97%) say they wish they’d factored in their other financial obligations when determining the mortgage they could afford, reveals a TD survey.
More than half of those surveyed wish they’d considered property taxes and maintenance costs (54%), and a third cite overall lifestyle expenses (33%).
At the same time, 56% of Canadians surveyed say they’re willing to exceed their budgets by up to $50,000 to buy a home.
It’s a contradictory stance that requires an advisor.
And, with sales of luxury homes increasing in some parts of the country, clients could potentially face a seller’s market, making staying on budget even more challenging.
Luxury home sales increase in several Canadian cities
Luxury home sales (homes priced more than $1 million) were up year over year in Victoria, Calgary, the Greater Toronto Area (GTA) and Oakville, while the luxury market cooled in Vancouver.
Sales of $1 million-plus single-family detached homes declined 32% in Vancouver year over year between January and July, reports Re/Max. And sales of luxury properties with a price tag of $3 million or more slipped 40% in Vancouver compared to a year ago.
In the GTA, sales of properties (detached and condos) worth $1 million to $2 million rose 28% compared to 2016. Sales of Vancouver properties with that price tag during the same period dropped 10%.
Sales of slightly more expensive properties from January to July worth $2 million to $3 million rose 37% in the GTA and dropped 27% in Vancouver.
The 15% non-resident speculation tax included in Ontario’s fair housing plan slowed demand from overseas buyers in the GTA overall, but did not significantly curb activity in the region’s luxury market, as it seems to have done in Vancouver.
Year-over-year sales of $1-million homes in Victoria, Calgary and Oakville increased 10%, 21% and 17% respectively.
In the GTA, sales of luxury condos have grown 85% year over year between January and July 2017. And luxury condos worth $3 million or more saw sales increase 121% year over year.
However, earlier this month, Sotheby’s International Realty Canada reported that in July and August, sales of both condominiums and houses over $4 million in Toronto fell 28% compared to the same months the year before.
About the TD survey: TD commissioned Environics Research Group to conduct an online survey among 2,000 homeowners, non-homeowners, homebuyers and potential buyers from July 28 to August 7, 2017. Respondents had to be 18 years of age or older and reside in Canada.