Since Late September 2008 I have been watching reporters saying that the Toronto real estate market has crashed or is going to crash. Lucky for me I got suckered into the talk. "Doom and Gloom" was constantly reported. My favorite were bargain shoppers looking for deals and wanting to put offers in on property 100k below asking. I thought to myself is this for real? Is this really happening? No way was I going to put an offer like that...its was so insulting...the facts weren't showing "doom and gloom."
Yes!! Volume has been down but prices in Toronto are down less than 1% in the 905 region there has been a drop of roughly 10%. I think the prices are fair. The last two years of real estate has been great...any dummy was able to sell real estate...I was starting to think that we may be like California or Dubai where grocery store baggers were able to make a fortune selling real estate.
My favorite part of the media is the call for a "Greater Depression." If this is for real then why does that reporter still have a job and why are people still able to watch tv. Do you see any soup kitchens out there? I don't. AIG, Nortel and other large corporations are still distributing large bonuses regardless of the company in bankruptcy protection. What is going on here?
Have you gone to the mall lately? My wife forces me to go to the mall with her all the time...All I see is people shopping. I can't even find parking. HELLOOO...where is the "Greater Depression" or "doom and gloom."
I do agree that there is a slow down and the facts show that there is a recession. A recession means that there is negative growth. Key word growth!!!
Anyways. I've been fortunate enough to be able to submit two offers this week and both sellers in different area still want 99% of asking. My buyers are wondering themselves whats going on with this market.
So what is the Truth? Is there a crash or has the media been run out of stories to talk about. I guess Obama is doing a crappy job by pulling troops out of Iraq. The glory days are over for the media...The Bush era is over and stupidity has come to an end. I think the Media should realize that times have changed and we need good news not B.S.
The moral of this blog is that real estate is still a safe investment....you can always rent it out if you don't get your price. You can't rent out your RRSP's.