As mentioned in my previous post, this year I have noticed an increase in power of sales in Toronto.

Every two weeks I extract from my sources Bank sales, Mortgage Company Sales, CMHC and other financial institutions' sales and post them online for my buyers.

Do you know why this is happening?

Well, there are two major reasons responsible for the increase in Power of Sales.

First of all, more and more people cannot pay their mortgages. They have taken the plunge in to the real estate market and they cannot afford their mortgage payments anymore. Many were looking for real estate deals, while others tried to make money by renovating and flipping homes. They loaded up on debt and now they cannot handle it anymore.

Of course, there is a normal number of buyers that want to support a home but were never meant to be homeowners. Not working with a capable real estate agent that sort of qualifies you for a home might have also contributed to this mess.

Now, the second cause is closely tied in to the first cause we explained above, responsible for the increase in power of sales. The second cause is Mortgage Fraud! Well, I myself did not experience the times when everyone wanted to become a real estate agent (or was I part of it?)

On the other hand, it appears everyone is becoming a Mortgage Broker! Wow! The Banks saw their sweet profits being nibbled away from them and they jumoed into the same band wagon, mostly indirectly throught the mortgage brokers they worked with. Now, look at the mess they have created.

My advice for those with cash: HOLD ON TO YOUR MONEY! I foresee crazy opportunities in a year or two. I say this because 5 year mortgages are slowly up for renewal. These were given out in 2000 up to 2005. When the mortgages open for renewal, rhey are being hit with double the interest rate and guess what happens...

Stay tuned for more...!