August sale of 6,418 single family homes brought the total sales for the year to over 64,000 and the 2012 projection to about 90,000, which will make this year one of the most active years in the history of the Toronto Real Estate Board.
We Canadians love bad news, and the press loves to warn us about POTENTIAL events. The media has been warning of a real estate slowdown since 2001.
The scare mongering by the media has impacted the real estate market, but with 6,418 sales in August, not really too much. But it has made it a great time to buy, as the Nervous Nellies want to wait and see what happens before they decide what to do.
Let's look at the facts. Canada's economy is strong. The stock market is doing well. Unemployment rates are at a healthy level. Interest rates are at historic lows making home ownership available to many individuals. Rental accomodation is at dangerously low levels with downtown rental units of 700 sq feet renting for $2,000 - $2,500 per month if you are lucky enough to find one. We had a unit that rented the very next day after we put it up on the market and received over ten offers/inquiries even after it got rented.
We never recommend speculating in real estate, but we do recommend investing in real estate. Investing means buying and prepared to hold for at least 5 year, and to be able to withstand any hiccups the market may experience.
Buying a property that has cash flow is always a good idea, and rental rates have never gone down in Toronto regardless of the economy, as people must live somewhere.
The market is strong and a small inventory of homes for sale guarantees prices will continue to increase and ensures that real estate remains a good investment. Just take a look at your quarterly RRSP/investment statements and this will just affirm you decision to diversify and invest in real estate.