Toronto’s market has rebounded, that’s for certain. Sales are back up after a few months of reported downturn of sales. Realistically, as mentioned in earlier blogs, we have a problem of comparison. The problem boiled down largely to a market surge that happened in 2016.
The fact is, when people see declines on year to year reports, they have to realize that this is just a comparison to the fastest growth in the history of Canada. As said in earlier months, leading up to this glacial growth, it was inevitable that the government would take action. It’s one of those processes of forced correction.
Market psychology is peculiar because it affects people who CANNOT afford to lose. We mean by this, the same people that are affected most by inflated prices, harder to attain mortgages and the like. The point is, when you introduce prices that hurt affordability, to create affordability, you have a problem that tends to affect people who need financing.
When it’s a matter of dollars earned each month, mammoth price increases actually do only affect people who need to finance their homes. I think that’s a matter of who is going to win in the rebound in Toronto’s market. New players are less available to fight in 2018’s Toronto Real Estate Market.
When it comes to increasing home sales percentage, it is more of a tell that people have regained confidence in the market. No longer do they have the fear that they are buying at the top of the market. Some segment of the buyer’s market has changed. Whether it’s land investors, foreign buyers or fundamental end users, the point is: someone is buying.
Whether you like it or not, this will cause, psychological needs to extend bidding wars down the road. No matter where you stand financially, this will affect you. It’s wise to be aware and predict the market conditions. If you have been following my videos or blogs, you might have seen that Toronto’s real estate market is consistently safe.
As I have been advising my clients and really trying to drive home the fact that market dips in Canada, at the moment are actually secondary to organic demand. The fact that unless there is an act of god or something that is abnormal- property here is quite stable.
Let’s remember that many foreign investors have been drawn to Toronto not because of high returns. They have come here just for stability.