Here is a link to our "August Real Estate Update":
http://realtytimes.com/117/RobRoland
It was back in 1989 that our real estate market surprised us after a serious run of escalating prices along with increased interest rates! I had just started real estate two years before when the bubble burst.Prices go up according to demand and Buyers were speculating. They would buy a home, fix it up and put it back on the market to gain a profit. Real estate cycles cycles are predictably tied to political, economic and natural cycles. When comparing the situation in 1989 with today the questions is " Are we in danger of another collapse in our real estate market?" NOT IN MY OPINION AND THIS IS WHY !
Immigration to Toronto and Canada is strong and they want homes. Families lured to the suburbs to buy larger homes at lower prices are now considering moving back to Toronto to cope with high gas prices. Seniors are leaving their big homes for the ease of retirement and other optional living situations, many of which are located in the GTA area. These demographics are all people who believe, as I do, that everyone deserves a home and owning real estate builds wealth over the long term.
Mortgage rates are remarkably low. The economy may be changing but the fact is that there are still jobs, perhaps different ones, but lots of them. The latest quote I had for today’s mortgage was a variable rate was 4.15%.
I keep telling people to buy in the summer because rates are low and inventory high ! We now have a balanced market.
The Government of Canada is helping our real estate market to come in for a soft landing after many years of rising prices. They are aware and acting responsibly to prevent Canada from having a real estate bubble similar to the United States. Reducing the 40 year amortization to 35 years, with a down payment of 5% is a responsible action .
In 1989, I was helping a young couple buy a home. The media broke the news of “trouble in real estate”. I encouraged them to ignore the media, to go ahead and buy. They chose a modest home for $150,000, with a mortgage at 12%, enjoying home ownership. Now their home is worth close to $600,000. They just now bought their second investment property.
If you pay attention to the media these days, they will scare you into believing we are going to hell in a hand basket. Their job is to sell their media, not advise you on reeal estate. I give you now the same advice I gave back in 1989. “Choose your home wisely, with an open heart, one you love, knowing that over time your home will appreciate while you enjoy it and keep it for a long time.”
This newsletter is full of interesting and useful information whether you are a buyer, seller, homeowner, investor or renter.
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Warm regards and enjoy summer,
Rob Roland and Liz Palmer
P.S. For more news and amazing videos, here is the link to my e-newsletter http://theRealtyPost.biz/robroland2
