Some people are so convinced the market will crash, that they won't buy anything, even though they have a strong down payment, good credit and interest rates are very low.
Remember 2008, when the Real Estate market went down a little bit (unlike the stock market) and after that we have had almost a 10% increase in prices each year.
People talk every year and actually around this time of the year that the market will crash, "It will go down by 25%" has been reported. The media helps this along with every negative and scary story to keep you watching TV and buying newspapers. Has this happened yet? The answer is no. So why are people so afraid?
The inventory across GTA is very low at this moment, the population is growing, government has many regulations in place, so if they see any signs of the economy going south, they would make some changes right away. Canada unlike the United States, recently instructed banks to lowered the amortization period to 25 years. I think people who are afraid, they will be afraid of many other things as well and instead of taking action now, they will wait and then may regret why they haven't stepped into housing earlier. These people are procrastinators and who go with a flow.
Smart people plan and take action right away and will win in a long term. They will take advantage of higher condo inventories and could get a better deal on a newly build condo units. Just because there are so many units for sale in the same building Sellers are anxious to compete for BUYERS while they are sitting on the market for 2-3 months or more. Your realtor could negotiate the price and voila! You are the new home owner or investor!
~ Donna Bulika - City Condo Agent
