WHAT’S HAPPENING WITH THE MARKET?

You can’t watch the news, listen to the radio or google without hearing about the world economy and how it will affect real estate values here in Canada, specifically Toronto.  Since 2000 we have been experiencing a real estate boom like no other.  Almost ten years of the infamous Sellers market.  Even when the “listings to sales ratio” was balanced three years back we still had multiple bids consuming the market.  Historically the lowest ever interest rates, low inventory and Buyers galore made for a real estate frenzy!  Jeez some agents actually listed homes in downtown Toronto for $1.00  allowing the market to establish the price …. pretty easy stuff!!  Now things seem to be settling down a bit finally!  NO we are not going to have a sharp decline in the GTA housing market prices.  YES we are going to have some market balancing and stabilizing of prices.   Did we really expect that these inflated prices would continue indefinitely?  These prices being fuelled with the insanity of multiple bidding orchestrated by, in many cases, uninformed Buyers unfortunately.  Interest rates are still very low (why rent when you can buy) …. Toronto has a continuous influx of immigrants from inside and outside of Canada …. stimulous plans seem to be working …. in general the world economy is getting better and Toronto is a great place to call home.  In this balancing market, selling your home will mean better planning, staging and establishing the right price point.  Buyers will still buy homes with much more confidence avoiding the multiple bid frenzy.


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