August’s sale of 6,418 single family homes brought the total sales for the year to over 64,000 and the 2012 projection to about 90,000, which will make this year one of the most active years in the history of the Toronto Real Estate Board.
We Canadians love bad news, and the press loves to warn us about POTENTIAL events. Take for example the swine flu (H1N1) “pandemic”, or the 3 week in advance warnings that a hurricane forming in the Caribbean today will bring thunderstorms and unsettled weather to Toronto by the end of the month. Please! They can’t even get tomorrow’s weather correct! But we LOVE bad news. The media has been warning of a real estate slowdown since 2001, (right after they warned us about Y2K when all of the computers would crash, airplanes would fall out of the sky and our society would be totally disrupted!)
The scare mongering by the media has impacted the real estate market, but with 6,418 sales in August, not really too much. But it has made it a great time to buy, as the Nervous Nellies want to wait to see what happens before they decide what to do.
Lets look at the facts. Canada’s economy is strong. The stock market is doing well. Unemployment rates are at a healthy level. Interest rates are at historic low’s making home ownership available to many individuals. Rental accommodation is at dangerously low levels with downtown rental units of 700 sq feet renting for $2,000- $2,500 per month if you are lucky enough to find one!
I never recommend speculating in real estate, but I do recommend investing in real estate. Investing means buying and prepared to hold for at least 5 years, and to be able to withstand any hiccups the market may experience.
Buying a property that has positive cash flow is always a good idea, and rental rates have never gone down in Toronto regardless of the economy, as people must live somewhere.
The market is strong and a small inventory of homes for sale guarantees prices will continue to increase and ensures that real estate remains a good investment.
If you or a friend are contemplating a real estate purchase, please give me a call, I would love to help!
Have a great September!