As everyone knows, the only thing that seems to be on everyone's mind this year is - what is going to happen with the Toronto Real Estate Market???
In my lengthy career as a real estate professional, I have never seen such media attention. And unfortunately, much of it is negative. Is there a real esatate bubble? Will it burst? Is now the time to cash in?
If you look at what the economists and analysts say, it won't help. Some say we are at the peak and things will stabilize this year. Others predict the year will play out in much the same way as the last several years have - with double digit growth and increased unaffordability.
Our various levels of government seem to think they will find ways to cool the market. And for what it's worth, I think it's a mistake. The reason we are in this predicament is because of Toronto's municipal land transfer tax. When you look at the statistics from the last decade, you'll see that the inventory started to slowly decline once the new tax was introduced. And guess what - that causes house prices to rise. You know - the old supply and demand theory?
Which leaves us with predictions about what is going to happen this year. Inventory is now down 55 per cent from last year - and prices up 27 per cent. How long can that continue for? Nobody has the answer no matter what they're telling you.
So whether or not now is the time for you to cash in on your investment will depend on what your long terms plans are. If you're planning to downsize or retire - then I say YES - cash in now and move on. Maybe prices will continue to rise but selling now would be a safe bet. If you're planning to buy or trade up? That's more of a gamble.
I've had many clients over the years say they don't want to purchase now because they're waiting for the market to cool. Well - it hasn't and so they're either priced out altogether or paid way more for the same thing than they would have two years ago.
What if they wait another two years? Will prices still be up or finally settle down? Who knows!
The one thing I do know with absolute certainty is that owning real estate in the GTA will always be the best investment you make. Even if the market were to dip - it'll go back up. And you'll be in it for the long haul.
Some predications say that in 50 years from now, the average Toronto home will be worth $4.4 million. I hope you'll be riding the wave.
In my lengthy career as a real estate professional, I have never seen such media attention. And unfortunately, much of it is negative. Is there a real esatate bubble? Will it burst? Is now the time to cash in?
If you look at what the economists and analysts say, it won't help. Some say we are at the peak and things will stabilize this year. Others predict the year will play out in much the same way as the last several years have - with double digit growth and increased unaffordability.
Our various levels of government seem to think they will find ways to cool the market. And for what it's worth, I think it's a mistake. The reason we are in this predicament is because of Toronto's municipal land transfer tax. When you look at the statistics from the last decade, you'll see that the inventory started to slowly decline once the new tax was introduced. And guess what - that causes house prices to rise. You know - the old supply and demand theory?
Which leaves us with predictions about what is going to happen this year. Inventory is now down 55 per cent from last year - and prices up 27 per cent. How long can that continue for? Nobody has the answer no matter what they're telling you.
So whether or not now is the time for you to cash in on your investment will depend on what your long terms plans are. If you're planning to downsize or retire - then I say YES - cash in now and move on. Maybe prices will continue to rise but selling now would be a safe bet. If you're planning to buy or trade up? That's more of a gamble.
I've had many clients over the years say they don't want to purchase now because they're waiting for the market to cool. Well - it hasn't and so they're either priced out altogether or paid way more for the same thing than they would have two years ago.
What if they wait another two years? Will prices still be up or finally settle down? Who knows!
The one thing I do know with absolute certainty is that owning real estate in the GTA will always be the best investment you make. Even if the market were to dip - it'll go back up. And you'll be in it for the long haul.
Some predications say that in 50 years from now, the average Toronto home will be worth $4.4 million. I hope you'll be riding the wave.
