Isn’t it amazing how quickly each year comes and goes? Yet, when we look back over each passing year, we quickly realize how much we have accomplished and that we’ve just had another incredibly busy year. This is why it is so important not to miss the special magical moments that each of us witness throughout our busy year. No matter how quickly you work or get things done, there will always be another pile tomorrow, so take that few minutes or hours to truly enjoy & appreciate those moments and amazing people in our lives because after all is said and done, they are what truly brings you joy and gives you the energy to do everything else.
With regards to the real estate market, we continue to see strong signs of growth and those in a buying position continue to strengthen their patience in ways they never thought possible. Senior economist, Dr. Benjamin Tal has this to say about the current and coming changes to our market. He sees the Canadian market staying stable for the next 3-6 months and sees the Ontario market increasing modestly by 4-5% per year for the next 3-4 years. He also thinks that likely, Canada will not return to the low rates we’ve seen in the past 2 years.
There is some that believe the U.S. economy and dismal real estate market will repeat in Canada. This is very unlikely to happen given these facts:
- Much of the U.S. market has been financed through sub prime, now known as “alternative lending” (40% of which was written in 2006 indicating that the worst is yet to come) as compared to only 5% of Canada’s market being sub-prime. Additionally, over the past 2 years, the Bank of Canada rate went up 7 times vs 17 times in the U.S.
- A large percentage of the real estate activity in the U.S. has been through speculative buying for investments as compared to mostly end users buying in Canada.
- Canada’s fundamental economic structure is much stronger than in the U.S., not to mention our consumer confidence level as it pertains to our respective economies and current political state.
Having said that, we do need to be aware of the fact that the Canadian lending institutions are dramatically changing the way they finance mortgages in light of the problems facing the U.S. and are therefore much more cautious, putting much more emphasis on the strength of the borrower as well as ensuring the correct valuation on properties purchased. Paying “true market value” is very important today, especially given the bidding wars occurring (which I prefer to call “ego” wars). If you are in a buying position, pay close attention to what other similar properties are selling for and don’t go crazy on price. Also, please read the back of this letter for information relating to the new Toronto Land Transfer Tax.
As we make plans for the holiday season, our thoughts turn to our family and friends more than perhaps any other time of year. May happiness surround you as you spend time with those you love and may the season’s simple joys fill your heart and mind with a lifetime of wonderful memories.
All the best,
Michelle Read
Your Personal Real Estate Consultant…For Life
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