Don't Believe Everything You Hear!
There has been more than 5,000 Sales in October! So don't believe everything you hear. The media continues to fuel current fears of the ecomony and the real estate market. This fear creates a wait which has the effect of lowering demand and thus impacts home prices.
Although the 5,155 sales the Toronto Real Estate Board reported in October was less than October 2007, it was still a very active market and despite the media reprts, the average home price stands at $380,654, UP 1.2% OVER 2007. There is no question that there are fewer sales taking place. In October's TD Canada Trust forecasted that the average home price in Ontario will drop by 3.8% on average in 2009 and increase by 2.5% in 2010.
So, should someone delay in purchasing?
I do not believe so for a number of reasons. Interest rates are very low in order to stimulate the economy and when interest rates go up (projected to happen in 2009) that will nullify any savings that a buyer may realize by delaying their purchase. Most Buyers "move up" in homes, buying a more expensive home. You may sell your current home for less than you want, but you will be able to pay less for the new home and that is worth doing. Most importantly, a home is a home, not an investment. It's your sanctuary. It's a place to raise your family, enjoy your garden and cherish your memories. Do not forget that if one is renting that is lost money as you are helping the landlord pay off his mortgage while you just lose the rent! The bottom line, IF YOU CAN AFFORD THE HOME, THE BEST TIME TO BUY IS NOW! If you have any questions, please feel free to call.