Hope you had a nice Family Day long weekend!

 

I sent an email out quickly yesterday to let you know about my latest podcast...check it out when you have a chance.

 

Market is just plain crazy these days...prices are up 21.8% and if a home comes up for sale in the GTA and if there's not a line up of buyers to buy it, there is probably something drastically wrong there. Bottom line is that we don't know how long this will last and if there will ever be a end to the soaring prices. I do know one thing however...it's that there has never been a time where prices have been this high before.

 

I'm not reaching out to anyone looking to move up to a bigger home here...yes, do that only if you can afford it and plan on being there for 5-10-15 years or more...it's still worth it. Also for the first time home buyer...again, if you can afford to buy and plan on staying for the long haul, go for it. 

 

In both cases, you need to be patient and be prepared to beat other competing buyers. I've been in and won a lot of bidding wars and have learned a few tricks along the way.

 

The actual person I'm talking to here about the "Crazy Market" is the one that has an investment property that it looking to profit exponentially! 

 

Investing is all about one thing...making a profit. Sure, keeping it can possibly profit you even more money down the road. But what if...there is a bubble? The house that you bought for $250k 10-15 years ago that's worth $800k or $900k right now and in a year from now it's drops to $650k because that's really what it's worth.

 

I'm probably the only agent in all time that'll say this to you...but this is a "Fake" market right now. The biggest reason why prices are where they are is because of foreign investors. Yes, we have lack of inventory and prices have to rise if you have 10 buyers for every one available home for sale...no brainer. But when you have 10 buyers and one of them outbids everyone else by $50k because they've made $4 on every dollar they exchanged and back home are multi-millionaires and because Vancouver put a 15% tax on foreign buyers that are just coming to the GTA now...you get my drift. This is why we are where we are today. If we didn't have these deep pocket buyers, instead of having to pay $800k for a town home today, it would realistically be about $600k instead or that 25 year old original 2500sq foot detached home in Vaughan that should be about $900k is selling for $1.15mil.

 

Bubble, no bubble...the news is teeter tottering all over the place because no one knows for sure. 

 

I do know that if they brought the 15% tax to Ontario, we would kiss our deep pocket investors goodbye and prices should stabilize. 

 

If you do have that investment property and think that there's no end to this madness...think again because no market has ever gone up for ever. The goal for investors is profit. If there's a chance to profit more now than later, why take a risk in loosing that profit? 

 

Anyway, it's just my take on this market...you must be comfortable for the decisions you make. I'm around if you ever want to talk more about it. 416-918-2758