Doom and Gloom or Silver Lining?

Recently there has been so much negativity in the press about the status of the real estate market in Toronto. I have heard that the market is in for a drop of anywhere between 10-25% over the next year. I have had a difficult time reconciling this with what I am seeing in the real world and demographic reports. Yes, the sales are down across the board but the prices of homes do not seem to be following. I was just in a multiple offer this past Sunday where there were 13 offers! I believe that the fundamentals of the Toronto market have not changed. I cannot speak to any other markets in Canada though. Barring any serious problems in the United States (ie. the "fiscal cliff") or an absolute meltdown in Europe, I do not see more than a return to a balanced market. I thought I was just missing something when I saw this article in The Star. I hope that this balances things out. So my question is this; Should we not be buying a rental property or moving up now while things are slow? I will leave that up to your interpretation.

http://www.thestar.com/specialsections/realstateofrealestate/article/1277929--opportunity-talks

 

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Mike Andrews

Mike Andrews

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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