I’ve been Selling and Buying Real Estate Since 2008 and before that I’ve worked in the mortgage industry. Since the 2008 Drop, people have been constantly saying that they are waiting for the market to drop. Since then the prices have been going up and up.
If you look at the stats from the past 40-50 years, you will see that the market goes up, and the market goes down. Overall the market has steadily gone up and even when there is a steady up take, there are dips and valleys from time to time.
In Canada, the government, has done everything they can to slow the market down, with regulation and new rules. For most of the country this has worked, but in Toronto, this has not. In Toronto you have a double land transfer tax as well. Since Vancouver put a tax on foreign buyers, those buyers have gone elsewhere to invest their money. It looks like Toronto is where they are going. The market has exploded even more since these rules in Vancouver came into effect.
So Everybody is saying the sky is going to fall, well it might, but here are the only way that I see this happening, but in reality I don’t see it happening anytime soon.
1. Interest Rates: If the interest rates increase by 2%, the market is going to change drastically. Investors, and people trying to buy a home will not qualify, with that kind of interest increase and the already new rules that have taken effect.
2. Inventory: If everybody starts listing their home to capitalize on the boom, then there will be too much out there and prices will decrease.
3. Unemployment: If people don’t work, then they cannot afford their home. If there is sudden loss of jobs in the country like in Calgary, then there will be a drastic change in the market. Calgary is an example of this.
4. New Regulation: If the city, province, or Country, makes some new policy to curb the market even further. We have seen this in Vancouver.
5. World Event: If there is some sort of war, or market crash, this could change the equilibrium of the market. If there is some sudden world war or something like that, it would make people not sell their places and buy new ones for a period.
READ RECENT BLOG & ARTICLE POSTS BELOW
There has been a lot of advances in technology this year, and one of the areas is virtual staging. It has come down so much that some agents are looking at this as viable alternative to staging, rather than have the place look empty on photos and videos. In my...read more
The prices of sales in the GTA have come down 30% from last year. Let's put this stat into perspective. The prices from January to April sky rocketed and then came down after that. Of course they are going to be a lot lower since the prices jumped so much. The media...read more
The Liberal Government both at the Federal and provincial level as well as Mayor of Toronto seem hell bent on bringing down the prices of real estate to make it affordable for everybody. In some imaginary world this is going to stick. The problem is with their plan is...read more
I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...read more
I've had enough of these builders and you should really beware before buying a new build. Over the past 10 years I've been selling Real Estate, I've had one bad situation over another with my clients. The past two years, I've reached my limit and I'm here to say don't...read more
The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider: Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....read more
When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....read more
I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...read more
One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...read more
Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...read more
The liberal government has announced that they will be doing something to calm the renting hikes from landlords. While this is a good thing for renters, it could be a detriment to housing and landlords going forward. Some landlords have already become proactive and...read more
While the Ontario Government cut this John Tory's dream of having a great highway into Toronto short, I believe he was on the right path to increasing the value of Real Estate. When I heard they were going to add some sort of toll to cars going into the city, I was...read more
Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...read more
What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market. The middle & lower class does not like the fact that they cannot afford any real...read more
Right now marijuana, and grow ups are a fairly minimal concern when buying houses. Agents typically put a clause that the owner never grew or has known about any grow ops in the house, but this is about to change next year. What is changing is that July 1st, 2018,...read more