The constant rhetoric about bubbles and collapses is nothing new to the real estate market and the media especially. There is a need to sell papers and this is certainly an attention grabber. That said, I don’t agree with the headlines as I think they are missing some relevant details. Although it is absolutely true that July and August were down months for sales, it conveniently ignores just how robust the spring was as people hurried to avoid the HST. Now that Labour Day has come and gone, people will get back into the swing of things and they will very quickly realize that the HST did not have a significant impact on resale houses and secondly, that although rates are trending higher, they are still extremely low.
So, what’s in store for the Toronto market in my view? Of course we had an incredible 10-year run with high demand, housing shortages and price increases. However, it is totally unwise to bet on a collapsing market. I don’t see it at all. Case in point: Last week I sent a listing for a house on Playter (bit.ly/b8kPDS). The house sold over asking price in less than two days! So much for a collapsing market. For a collapse to occur there must be a bubble and I don’t believe the Toronto market has had one. We may be seeing slower growth and the end of double-digit price increases for the next few years. This is a very good thing for everyone: simply a mild and steady climb and a much more balanced market.
We have a great city, culturally diverse, safe and functional. We have a strong economic base, low interest rates, great housing stock and high immigration. Investors from all over the world bet on Toronto (over New York, London, Paris and Tokyo) because of our real estate growth potential. Mark my words: real estate is still the safest investment both in terms of personal use and as an investment vehicle. Most would agree that it is unrealistic to expect a 10-20% annual return from your stock portfolio and likewise it is not realistic to expect the same from real estate. That said, steady returns are hallmarks of property investing and without question real estate will do wonders for your personal and financial health.
The price wars and multiple bids are certainly becoming a thing of the past except in cases where agents grossly under price the property or in some very high demand neibourhoods. That bodes very well for both the buyers and sellers to move on and do the things they were planning to do: buy a better home, renovate or make an investment. Don’t buy into the panic generated by forecasts of collapses; don’t play the waiting game. Chances are you will be waiting for a long time and most likely, without any tangible gain. Remember: great fortunes were made through real estate by people who took action, while others debated and analyzed things to death. There’s no time like now to start taking action.
Give me a call today. Whatever your plans may be, I can help you evaluate your options. If you are thinking of a long term investment, I can help you get started, identify, finance and manage your property. I have done it for many others who have successfully built a very nice nest egg.
I love my work and take my business very seriously. As always, I take this opportunity to thank you for your ongoing support, your trust and your referrals.
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Real Estate,
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Toronto Real Estate Market
The constant rhetoric about bubbles and collapses is nothing new to the real estate market and the media especially. There is a need to sell papers and this is certainly an attention grabber. That said, I don’t agree with the headlines as I think they are missing some relevant details. Although it is absolutely true that July and August were down months for sales, it conveniently ignores just how robust the spring was as people hurried to avoid the HST. Now that Labour Day has come and gone, people will get back into the swing of things and they will very quickly realize that the HST did not have a significant impact on resale houses and secondly, that although rates are trending higher, they are still extremely low.
So, what’s in store for the Toronto market in my view? Of course we had an incredible 10-year run with high demand, housing shortages and price increases. However, it is totally unwise to bet on a collapsing market. I don’t see it at all. Case in point: Last week I sent a listing for a house on Playter (bit.ly/b8kPDS). The house sold over asking price in less than two days! So much for a collapsing market. For a collapse to occur there must be a bubble and I don’t believe the Toronto market has had one. We may be seeing slower growth and the end of double-digit price increases for the next few years. This is a very good thing for everyone: simply a mild and steady climb and a much more balanced market.
We have a great city, culturally diverse, safe and functional. We have a strong economic base, low interest rates, great housing stock and high immigration. Investors from all over the world bet on Toronto (over New York, London, Paris and Tokyo) because of our real estate growth potential. Mark my words: real estate is still the safest investment both in terms of personal use and as an investment vehicle. Most would agree that it is unrealistic to expect a 10-20% annual return from your stock portfolio and likewise it is not realistic to expect the same from real estate. That said, steady returns are hallmarks of property investing and without question real estate will do wonders for your personal and financial health.
The price wars and multiple bids are certainly becoming a thing of the past except in cases where agents grossly under price the property or in some very high demand neibourhoods. That bodes very well for both the buyers and sellers to move on and do the things they were planning to do: buy a better home, renovate or make an investment. Don’t buy into the panic generated by forecasts of collapses; don’t play the waiting game. Chances are you will be waiting for a long time and most likely, without any tangible gain. Remember: great fortunes were made through real estate by people who took action, while others debated and analyzed things to death. There’s no time like now to start taking action.
Give me a call today. Whatever your plans may be, I can help you evaluate your options. If you are thinking of a long term investment, I can help you get started, identify, finance and manage your property. I have done it for many others who have successfully built a very nice nest egg.
I love my work and take my business very seriously. As always, I take this opportunity to thank you for your ongoing support, your trust and your referrals.
Add your feedback and comments below!... We'd love to hear your thoughts on this topic.
Put Vlad's Seller's expertise to work for you!... If you're looking to sell your home, contact Vlad now to get it done right.
Know someone who is selling their home?... Use the link below to Share or Email this article so they too can benefit from this knowledge.
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Tagged as: Real Estate, Real Estate Bubble, Riverdale, Toronto Real Estate