2008 was a year of change and challenge for real estate in the Greater Toronto Area, as it was with most sectors of the economy. The average price increased fairly substantially in the Spring, as it does in most years, but stalled and fell back as we moved into the Autumn market. (Yes. I purposely avoided using the term "Fall" market.)
Where are we heading? That's a great question that no one can answer with any certainty While the average price fell in October, it rebounded in November (see graph on reverse). However, the total number of sales for the month of November was down by 50%. A lot will depend on interest rates, rental vacancy rates and, particularly in certain areas, job stability (e.g. GM in Oshawa).
I personally believe that we are seeing a fantastic opportunity for buying real estate, whether it is as a first-time buyer or buying investment properties. Will it get better? It may, but things can change very quickly and we often don't know the opportunity is gone until it's too late. If your "personal economy" allows, it may also be a great time to consider a "move up" as the higher-priced segment of the market has seen more pressure-but it must be done very carefully. You don't want to end up replacing the "Seller in trouble" whose situation you just finished taking advantage of! As the saying goes, "It's always the right time to buy a great home, but it's never a good time to buy a wrong home!"
Whether you, or someone you know, are considering a first purchase, an investment property, moving up, down or even out of the area or the market - take a look at the graph on this page. It illustrates the price trends for the Greater Toronto Area, not only month by month, but also over the last several years. Call me to discuss how to use this information to your advantage. Timing is everything! Let's get together and look at when to buy or when to sell and, if you're doing both, which order to do it in. (If you wish to receive a monthly update, just email me and let me know.)
Finally, (and I HATE having to add this paragraph, but if I didn't, I wouldn't be doing my best job for you) let me say that I hope and pray that you don't find yourself faced with the prospect of having to sell, or worse lose, your house due to the economic factors that we currently face. If it appears as even a remote possibility, don't wait to contact me. I am here to help and I have experienced many challenging real estate markets over the past three decades that I have been a Realtor. Unfortunately, in past situations, people have called me when it's too late and the Big Bad Wolf (or the Mortgagee) is at the door. Before you lose your job, have your credit downgraded or lose your equity, I may be able to help you find alternatives, but I can't do much to help when the damage has already been done. Denial could cost a chance to look at other options that may be available rather than having to sell your home. Let's look at them while we can. I would much rather only sell houses that people WANT to sell! (There. I said it. Now enough of this media-fed negativity!)
I sincerely hope that 2009 is your "best year ever". I look forward to helping you make it so!
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