While the interest rates may have gone up a bit yesterday, I believe that the Real Estate prices in Toronto, and GTA are not going down at all. There is a lot going against the market, new regulations, interest rates, unemployment, and our dollar.
There are many things going against our market, but there are a few driving factors which will keep the bidding wars coming:
1. Low Dollar:
Did you know that in China, they cannot own property? What this means is that people there have money to invest and cannot invest it in their own country. They come here because of our low dollar. This is what is driving prices up in many markets in Canada. Our Real Estate prices are cheap compared to many around the world. New Yorkers laugh at our dollar per square footage. Now that the dollar is lower than .70 usd, Americans will also be looking to the north for investment.
2. Interest Rates:
While this is on the bad list, these rates are a joke compared to years ago when rates were at 5% 8% 20% It is cheap to own a home in Canada. In many cases its easier to get a mortgage than get a lease. You don’t pay the mortgage, they take away the house.
I have many clients waiting to pounce on a lower market. Let’s say the market takes a dip for a few months, and it might, then I know I have a lot of clients waiting to take advantage of that lower priced property. People are waiting for a lower market to go in. This will drive the prices up again.
I think these three factors are the most important things to consider when you panic over a quarter percent interest rate increase. Don’t hold your breath when the pundits are saying that the market is going to crash, in my world its going higher by the minute.
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