Have you been thinking about selling your condo? Before you call a realtor and list your condo there are some things that you need to take into consideration. Is now a good time to sell or should you hang on a little longer. Let’s look at what selling your condo will mean and whether now is the right time. Rising house prices in Toronto mean you can probably get a good return but you also have to consider whether it will be enough to put down on another home.
If you have had your condo for four or five years or longer then it may be a good time to sell. Prices have risen significantly in the past few years and according to condos.ca the average price of an 800 square foot condo has gone up by almost $80,000 over the past two years and if you bought back in 2012 you could be looking at $130,000 return on your investment. But is now the right time to sell or should you hold out another year to get a better return?
To Sell or To Wait
Yes, it is a good time to sell. Taking the equity out of your condo and investing that in a new property gives you the opportunity to continue to grow the equity even further. There are plenty of condo owners who are sitting on the fence because they expect the prices to climb even higher. You also need to remember that housing prices across the board are climbing and you could actually be losing an opportunity.
Price corrections happen in every market including Toronto’s and yes there is a certain degree of concern that rising prices are leading to a bubble or a correction. Drastic market changes can be unpredictable to say the least. When there is high growth it can help make the price corrections a little easier to bear. It is likely that a price correction won’t wipe out your return. Even in the middle of a correction you will still get back more than you paid initially.
Don’t feel pressured to sell your condo. While it might be a good time to get a great price it doesn’t mean it is the right time for you. If this is something that has been on your mind or you want to retire out of the city then you should definitely get on the phone to your realtor and list today.