Office:416.222.8600 / Fax:416.222.1237 / Email:waynekahn@rogers.com
DisclaimerPrivacy Policy
|
2009 Outlook Updated: January 12, 2009 * Buyer's reaction to current economic woes in the U.S. has created an increase in active listings in the GTA due to slower home sales. Many sellers are lowering their asking prices to attract buyers; even more so in the $500,000 + ranges. * Unlike the real estate crash in the early '90's, the current change in market conditions is widely considered to be a temporary 'correction' that should be resolved sooner than later with the ongoing introduction of lower interest rates and Government incentives/bailouts to save jobs nationwide. * Average home prices are expected to be adjusted by (up to) approximately -5% in 2009 with larger adjustments found in the luxury home market; especially in the Million+ dollar home market. * Interest rates will continue to drop in 2009 making home ownership easier. Current mortgage carrying costs are historically at rock bottom rates. * Move Up buyers are taking advantage of the current market by enjoying a smaller difference between their sale and purchase compared to this time last year; the bigger they are, the harder they fall! * Many more conditional offers (sale of the buyer's home) are being accepted by home sellers as buyers are hesitant to commit to a purchase until they know they have a firm buyer for their home. * Smart home buyers see the current market not as a crisis but as an opportunity. Almost gone are the days of multiple offers, waiting to present offers (agents holding offers), sales over the asking price, unconditional offers (to be more competitive in a bidding war) and overall buyer stress. Buyers can now pick the best homes at the best prices without the added pressures of the past. Tips: * Buy, buy, buy! This is what all home buyers have been waiting for! If you own a smaller home take advantage of the great buying opportunities in 2009. No pressure, just great deals! * Carrying costs have never been better (almost). Buy your first home or purchase a larger home and compare your savings to last year; the combination of lower prices and rock bottom interest rates is the real incentive to buy now! *Smarter to sell before you buy and request a long closing/possession date from your buyer to give you plenty of time to purchase your next home. It's much easier to buy today than it is to sell. Offers conditional on the sale of the buyer's home will make it more difficult to get the best deal. If your house is sold, you are in the driver's seat! * Don't believe everything you read! Unfortunately, bad news sells papers. If you really take a closer look at our economy you will realize that our banks are rated the best in the world and changes in employment rates are nominal. The current economic reality is far better than the perception. The GTA is your oyster! Opinions presented here are from this Realtor's point of view only… May the Magic of the market always be yours! 
|