As a REALTOR with my finger on the pulse of the real estate market many people come to me for advice, as they should. I have friends, family, and clients ask me all the time “Is it a good time to buy?” and “Is it a good time to sell?”. My answer is always a variation of “It depends on your situation”. Let me explain.
First, no one can tell you with 100% certainty what the market is going to do. I recall one friend telling me in the year 2000 that the world’s market was going to crash. When it finally did in 2009 he called me up to say “see I told you so?”. “Wow, you were only off by 9 years! Amazing!” Obviously I was being sarcastic. It doesn’t take an economic genius to realize that all markets at some point will experience a correction and the best indicator of that is history. However, along with these dips in in the market the real estate market has always rebounded. And 2009 wasn’t even that bad for Toronto in terms of real estate dips with the majority of people not affected in the slightest.
At the time of this writing the average home price in Toronto has risen by 5.6% per year since 1982. To those that have the money to purchase real estate but are saving just a bit more you are most likely earning 2% at the bank while the house you are saving for is going up by 5% or 6%. It’s easy to talk about other people’s money but with the average homeowner staying in their home for 14 years before moving these dollars and percentages won’t matter in the long run. What is your happiness and well-being worth?
When it comes to buying or selling real estate I truly believe that it depends on your situation. Are you a young professional in their mid-20s living at home waiting for the market to dip before you buy your first home? You might be 40 before this happens. Are you and your husband living in a 500 sq foot condo with a tiny baby waiting for prices to drop before you buy a bigger place? You may have to make room for junior in your own bed as he might be a teenager before that happens. And what if you own property looking to get something else? You don’t have to be in real estate to know that if you sell high you will buy high and if you sell low you will buy low. If you’re in the fortunate position to own a portfolio of properties we’ll have a different conversation. Many of us aren’t in this situation however, and are either dealing with buying our first home or dealing with our primary residence.
So wondering if you should buy or sell? Look in the mirror and forget about the numbers for a moment. What do you want to do? Then call me and we’ll figure out the moves we need to make from there.