A brief word about the current state of the market.

Given all of the un-certain and often disconcerting news from south of the border, one of the questions we as Realtors' seem to be asked a lot more often nowadays, is " what about us? " Is our market still as viable as it was this time last year, and all things being equal -- should I wait?

The first answer I usually give to this question is that the Condominium Market in Toronto, is first and foremost a MARKET. Hence, what one really has to do is judge for ones' self, the current health of todays market, the factors (current and imminent) which might affect our market going forward, and what if any trends and/or tendencies already seem to be implicit in the day to day activities of this particular market.

The discouraging thing for many people looking at the Toronto Real Estate Marketplace, is that the fundamentals of our market are still quite good -- which to some extent implies we shouldn't even be having this conversation. ie./ The Job market in Toronto is still buoyant, interest rates are still at or close to their historic lows, and the relationship of supply vs. demand (and/or Buyers vs. Sellers) continues to remain more than adequate to support a strong and healthy market going forward. Hence -- if there is an issue (and there definitely seems to be one) it's more an issue of what is happening south of our border (in the U.S.A.) as opposed to anything inherently amiss within our own market.

Virtually every day we as Canadians (Torontonians) are inundated with bad news from the U.S. about ever increasing rates of fore-closure, erroding Real Estate values, and the resultant stories of pain and anguish these issues inevitably create for those affected. In other words, with this dark cloud hanging over the U.S. market, it becomes inevitable that their collective nightmare becomes the back-drop to our own sense of things at home, and that despite some very sound fundamentals, people here are starting to question what might befall our own marketplace going forward. At this stage then -- our only real issue seems to be an issue of PERCEPTION and inturn our very real and understandable concern that these maladies may yet drift northward and begin affecting us as well.

As for the consequences of this shift in general PERCEPTION, we are in fact already feeling some of the initial effects of this condition in terms of greater sales inventory (properties for sale), an increase in the average length of time it takes to sell a property (which is now a little longer than it was even just a few months ago) and the reduced number of properties which actually ellicit multiple offers and/or sell for well above asking. In a very real way then, we've become so accustomed to the consequences of a genuinely HOT market, that even a healthy market starts to worry us. If on top of this you start to factor in the incessant litany of bad news stories emanating from the States, it's actually no wonder there's a growing feeling of trepidation in our own neck of the woods.

What to do about this? What to make of this? and/or how to proceed going forward? If in fact you are still in the market for a new home and/or need to sell a property, I think the only rational thing you can do is re-examine your REAL reasons for wanting to buy and/or sell real estate, and to frame your' future activities and expectations in consequence of same. In other words, if you're thinking of selling a property at this point, take into account the nature of what's going on at present and re-calibrate your' expectations accordingly. If on the other hand, you genuinely need and/or want to get into a property -- keep in mind that the fore-going developments are in fact working in your' favor, which gives you an enhanced capacity to negotiate a better deal on your' own behalf.

As for recommendations, I don't know that I'd be arguing in favor of any kind of heavy concerted speculation at this point, but if what you're seeking is a principle residence and/or a condominium to live in yourself, I don't know that the current situation should constitute a problem and/or deterrent. As I tell most of my clients, despite any short-term and/or interim problems which may befall our market (and markets always endure changes -- positive as well as negative) I think our City still has enough going for it to assure that future real estate valuations will be higher in 5 to 10 years time than they are right now. In other words, as long as you are still in this for the long haul, and not just in the market to make a quick buck etc... I'm still fairly convinced that you're more than likely to be better off in Real Estate in 5 to 10 years than you are right now. Moreover, as long as you buy smart and buy well (the right kinds of properties, in the right locations etc....) odds are still pretty good that you're going to do ok no matter what the market does in the near term.

The current reality is that the U.S. is beset by a whole host of problems not directly applicable to our own circumstance, and given this utterly important distinction, our market shouldn't suffer anything like the same kinds of consequences besetting their market. The quicker this distinction is acknowledged and realized by the collective parties making up our domestic Real Estate market, the sooner this new PERCEPTION will hopefully anihilate the previous mis-conception and allow the normal market forces to once again assert their authority over what is what, and what ought to be. Although that too may well take a while, there is a sort of inevitability to it. As any climatologist will tell you, no matter how large a storm system and/or " dark cloud " might be, it will eventually give way to natural climatological forces, and when this occurs -- it's only a matter of time before the sun will re-appear.