Blog

During the mid winter months of November and December of 2008 was probably the best time to purchase real estate in Toronto.  These months were seen as when real estate hit rock bottom of the negative depths of human despair.  For those who do not follow the real estate market often, it would be hard to fathom since even till now, the economy continues to cut jobs and downsize. According to some Torontonian Economists, the worst is almost over for Toronto’s real estate market and most of us can only hope that the market continues to flourish for us to reap its rewards.  

It was a quick ride with depreciation showing a maximum of 10%. According to TREB statistical numbers, the bulk stabilized and began to grow.  Remember the month of February, this was quite busy for sellers who chose to re-sell their property and buyers were out for a hunt and a good bargain. Almost all of the well priced properties were sold by the end of the month.  According to the Toronto Real Estate Board, sale numbers based on the MLS for the months of February 2009 were down 31% compared to February 2008 – this can be seen as a large improvement from 55% and 45% for December 2008 and January 2009, correspondingly. On the bright side, sales are only down by 18% for the month of March which isn’t so bad as most predicted. New condominium developments are reporting sales again and buyer traffic is continuing to grow.

We are obviously not returning to the seller’s market with multiple bidding wars as sellers use to benefit from but rather, a buyer’s market to a more balanced market where the average time to sell is less than 45 days. This can be seen as a market correction which has been long overdue. It is the buyers turn to reap the rewards of a correcting economy. It’s like that saying, “what goes up, must come down!” and this is the best example of it. With real evidence in market statistics, sales and investments, coming May, this mini correction in the real estate market will soon be over and anything lost through January should be recovered. If you don’t believe me, ask anyone whose made a recent purchase or whose made big money in the real estate game. They will tell you that “time is of the essence” and timing the bottom is impossible. If we were all able to predict this, then wouldn’t we all be rich millionaires by now? But that is not the case and only those who continue to wait like sitting ducks will loose in this money making market. Those who do not have a real estate agent to work closely with them will have to rely on the buzz and scare from the media, but we all know that the media tends to over exaggerate the situation. Those who have real access to hard numbers and statistics will know that investments have not come to a halt and only those who wait will miss the opportunity of future gains. People who wait till next year to invest will kick themselves in the ass!