1. Anything in the kitchen you haven't used in six months like that juicer, breadmaker, rice maker, the three sets of dishes or the second toaster, you probably never will so create some more space in your kitchen and toss them.

2. The entire contents of your junk drawer. The reason you call it that is because you think you might have some useful items stored there? Empty the whole drawer into a box and anytime you use something put it back in your junk drawer. Each month toss what you have left in the box and rename your drawer.

3. Clothes that no longer fit just take up space. If they are going to fit at some point, then box and store them

4. Any books, notes or texts from high school, university or courses you took ten years ago or more are probably dated material and likely you'll never look at it again. Archive the special notes and papers in a box or scan and digitize them.

5. Any baby stuff is dated quickly so unless you are working on another baby, toss it.

6. Any stuff that you have in the bathroom (shampoo, conditioner, creams etc.) that you haven't used regularly means you probably never will so toss it.

For the fall and into the winter this year should be a great window to sell and buy real estate because:

*rates are low and expected to stay low as the central banks try to keep the housing sector and economy moving

*for sellers, the market is now more balanced, and even a buyers market in some neighbourhoods. This means selling your home will get you less and you can move up to a home for less money and often without competing bids

*for buyers, more choice and for less money

*the natural cycles of real estate are aligning- the long term cycle has shifted to a balanced/buyer market and the seasonal cycle is closer to normal-strong spring/fall and slower summer and winter

Many people try to time the markets and I think there might be a great opportunity in the next six months. We already know that sales are down and prices are dropping which turns this into a buyers market. The other big factor is that interest rates are still low and expected to stay there for the balance of the year as the feds try to keep this economy chugging along. Rates will not stay low forever.

Given these two scenarios, I think there is a great window while the market adjusts to what is expected to to a balanced/buyers market next year with higher interest rates. So time for all you buy low advocates to seize the window.

In the last month I have noticed the same ol listings coming up again and agin, some reduced and still not selling, This is the way the summer was years ago- slow and very few listings on the market. The number of sales and listings have been down for two months now, compared to the last few years, so we can officially call this a buyer market.

Interest rates are expected to stay low for the balance of the year so the next six months are a great window of opportuniuty for buyers.

As we have said for months, the market shifting and now it has come. Here is an article  of July 7, 2010  Toronto Star by Tony Wong with professional opinions on the real estate market this year. 

 "Average house prices in the Toronto market are forecast to start trending down in the second half of 2010, according to a house price survey by Royal LePage.

The real estate services company said Wednesday that house prices are expected to increase by 7 per cent by the end of this year compared with 2009. But those increases were frontloaded to the first six months of the year as buyers tried to take advantage of low interest rates and lower taxes.

The first six months of the year have seen double digit gains, a torrid pace at which analysts have consistently warned is unsustainable.

Some economists have said the market is overvalued by as much as 30 per cent in some parts of the country. Others have revised their forecasts downward because of the surprising strength of the market in the last year which has pulled sales forward.

Meanwhile volatility in the stock markets has some analysts worried that this will impact the housing sector.

“Economic indicators have improved, but my tone is becoming more grumpy,” said Toronto housing economist Will Dunning. “Recent volatility in the stock market it leads to a substantial correction could also set off a correction for the housing market.”

Volatility in the stock markets creates uncertainty for buyers who may have much of their wealth and retirement income tied up in equities. Concerns over whether the global economy is in for a W shaped recession is high on the list after problems with debt in the Euro-zone.

“There is a high degree of uncertainty, but it seems to me that economic risks are bigger on the downside than on the upside,” said Dunning.

In the second quarter of 2010, standard two storey homes in Toronto increased 10.5 per cent year over year to $589,857 according to Royal LePage.

Detached bungalows increased by 11.5 per cent to $481,933. Standard condominiums were up by 7.7 per cent to $326,913.

“I’m not convinced that recent strength in the stock market or in housing values are sustainable,” said Dunning in his most pessimistic report released this year.

Sales agents are already reporting that homes are sitting longer on the market as buyers have much more choice.

Existing home activity for June was down by 23 per cent from a year earlier, according to a report by the Toronto Real Estate Board released Tuesday."

We have noticed a slowdown the last few weeks and that should be  welcome news to Toronto’s potential buyers who have been frustrated by the frenetic market. The word "bubble" has been used but not by me which I would call stable. This is not a severe correction but rather a natural reaction to the market having peaked earlier this year. An increase in the supply of homes on the market will now bring stabilization in prices and in some cities we will see both prices and unit sales decline towards the end of the year and into 2011.

This is a great time to buy and sell because we now have more stability, balance and rates are still very low, even with increases coming overv the next year or two. Know your numbers, be reasonable and have a great team working for you.

What do you think?

Second Suites in Toronto