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.
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