Remember Enron?

Remember Enron? It brought about the end of the financial world as we knew it, didn't it? No? Well, the collapse of Lloyd's of London sure did! No, again? How about 9/11? Or the Savings and Loan scandal? No and no, right? Heck, I'll bet that few folks even remember the Savings and Loan story. It was a real disaster, on the scope of the current situation, but it didn't cause anything like the 'great depression' so many ‘experts' are predicting now. I believe that's due in large part to the fact that the hyperbole usually far outweighs the reality. Things may be bad, but they're not THAT bad!

Of the above-mentioned financial calamities, only the Savings and Loans scandal seems to have contributed to a real recession (in 1990-1991). The rest made for spectacular headlines in the financial media, but didn't have a strong negative impact on the economy or housing market. So why should we fear that this market correction will be so bad? So-called capitalists broke the rules of capitalism, and now the 'invisible hand' is giving them a spanking. Now, for better or worse, governments are taking steps to sooth their aching behinds.

I'm not sure why the media spent almost all of '08 browbeating Canadians into believing in a recession - thus creating a self-fulfilling prophesy of sorts. (Check out this story on Canoe Money: "Media adding to economic woes, experts say" http://money.canoe.ca/News/MediaHold/2009/01/07/7947796-cp.html.) I guess it's because bad news sells. Nonetheless, record-breaking retail shopping in Canada over the holidays clearly shows that millions of Canadians just don't believe that the sky is falling. They must be telling pollsters that they are worried - consumer confidence numbers are very low - but then they're going out and spending like they're NOT worried! Giving the choice between believing words or actions, I'll take actions any day.

The moral of the story is that we shouldn't get caught up in the hype. We'll ge through this slump, just as we always do. Be smart, be careful, but don't miss out on any opportunities that may jump out at you - especially (drum roll please!) in the Toronto real estate market! As surely as the current slow-down will pass, so too will the great prices that we are seeing on houses and condos all across the GTA. Take advantage of this extremely rare opportunity to buy in Toronto. Start by calling us today!

HAPPY NEW YEAR!!

Greetings happy reader! We want to wish everybody a Happy New Year, and wish you all the best for 2009! I'm still working on a motto for this year; how about "Doin' fine in '09!"? I think that sums up our attitude for life, and for our real estate business.

This year real estate is going to be great - better than last year, I can almost guarantee it! The financial markets are perking up a bit (the TSX is back above 9000), and the recent shopping season blew the socks off all the negative talking heads on TV. It seems that the average citizen disagrees with the 'experts'! As soon as the media stops boring us with all of their doom and gloom, watch for the Toronto real estate market to pick up again. If you are a buyer, don't wait! Now is a great time to invest in the Toronto market - especially if you are a 'move up' buyer. You will take a bit of a hit on the house you sell, but you will make up more on the house that you buy.

Just remember this: once the market turns, it will bounce fast, so don't sit on your hands for too long. Most industry experts (also known as Realtors) believe that we will stay in a balanced market for the time being. Balanced is good, but I'm not so sure that it will stay that nice for long. I'm expecting that, once buyers see other buyers step in, the rush will be back on. You heard it here first. ;)

Once again, Happy New Year!!

It's a great time to buy (really)!

With house prices trending slightly downwards, many folks feel that now is a bad time to buy. In reality, it's a great time to buy! If you have money in the bank (!), you can leave it there and make 2% or so in interest (which will probably be gobbled up by the banks in fees), and continue to pay rent/stay where you are. Or, you can flush it down the stock market.... Or, you can shop around for real estate and get yourself a good deal at a time of record low interest rates. This might sound like a sales pitch (never!), but it's all true. If you are currently renting, you are paying for shelter with no gain in equity. Even in a flat market, mortgage payments build equity in your home. Plus, this market will not last long. As many of you already know, I'm predicting a 'bounce' in the Toronto market once the current panic - I mean 'economic turmoil' - passes. After all, despite the stock market melt down, high city taxes, and pending job losses across the GTA, Toronto is still a great place to live, with a growing population and vibrant communities. Who wouldn't want to live here?! ;) So, think about that, then call us when you are ready to take advantage of this great buying opportunity!