Don't believe everything you hear!!
More Than 5,000 Sales in October!
While the 5,155 sales the Toronto Real Estate Board reported in October was less than October 2007, it was still a very active market and despite the media reports, the average home price stands at $380,654, UP 1.2% over 2007.
| Housing Market Indicators | |||
| Oct-07 | Oct-08 | % Change | |
| Sales | 7,915 | 5,155 | (-35%) |
| New Listings | 13,363 | 14,530 | (+9%) |
| Active Listings* | 20,626 | 27,277 | (+32%) |
| *All figures for single family dwellings | |||
There is no question that there are fewer sales taking place. The media continues to fuel current fears of economic and real estate market adjustments. This fear, more than real information, creates a wait and see attitude which has the effect of lowering demand and thus impacts home prices.
Unfortunately, sober, reasonable announcements get very little media play. In October TD Canada Trust forecasted that the average home price in Ontario will drop by 3.8% on average in 2009 and increase by 2.5% in 2010. I guess this information is not pessimistic enough to be published!
So, should someone delay in purchasing?
I do not believe so for a number of reasons. First, interest rates are very low in order to stimulate the economy. When interest rates go up (projected to happen in 2009) that will nullify any savings that a buyer may realize by delaying their purchase. Secondly, most buyers “move up“ in homes, buying a more expensive home. You may sell your current home for less than you want, but you will be able to pay less for the new home and that is worth doing. Thirdly, a home is a home, not an investment. It’s your “slice” of the world, your haven, your sanctuary. It’s a place to raise your family, to enjoy your garden and your pool. Waiting for the “right moment” puts your life and your dreams “on hold”. And lastly, do not forget that if one is renting that is lost money as you are helping the landlord pay of his mortgage while you just lose the rent!
The bottom line, if you can afford the home, the best time to buy is now!
If you have any questions, please feel free to call, it will be nice to chat, and if you know of someone thinking of buying or selling, please let me know. I will be pleased to help them and will take extra special care of them for you. Have a great month. F.
The latest newsprint articles on the real estate market can be obtained through my website link: www.fergussharpe.com/realestatenews
