Buyers Playing Waiting Game
Many have read the Toronto Star this morning and the big headline in the Business Section: "Home Buyers Play Waiting Game". There is a lot of truth to this statement. I hear it all the time from buyers and from sellers.
I have done many open houses in the last few months and have seen lots of traffic, also, but these visitors seem to want to wait and see what happens. Buyers are waiting for prices to come down even further, and sellers are panicking because the listings are not selling as quickly as they were at the beginning of the year. They are taking at least 3 weeks longer to sell. So, they drop their price. Buyers seem to think that this is due to the market falling apart. We are not seeing the same situation here in Canada as what is going on in the US. Take a look at the Market Watch and you also see doom and gloom for the month of October. Make sure you read the areas correctly. The west end is doing better than Toronto and the GTA. If you need help reading or understanding the Market Watch, contact me and I will assist you.
Talk to agents and you will hear about commission cuts and all the bells and whistles that new home builders are providing (even a new KIA car). But, if you read the last paragraph in the Toronto Star article, Toronto Real Estate Board president Maureen O'Neill says: " there's no question that in Canada the economic fundamentals to support a healthy market remain in place."
Also, I do blame the media for a lot of the doom and gloom. They print headlines when it is a gloomy article are in large bold print. There are times we are misled by the media. Old statement: "If it's written in newsprint, then it is true!!!" HMMM, makes me want to think. It may be true but you must look at all the details. One day they print doom and gloom, but if the next day it's better, then nothing appears. Take a look at the bouncing of the TSX. I can't keep up, one day up, one day down, one day down further, one day yipee, etc, etc, etc.
Consumer confidence is definitely being affected by media reports on the US econ0my. Remember, that is the US and this is Canada. There is a difference. Just take a look at an article from an RBC mortgage advisor. Call him or call your own mortgage specialist. Get accurate information.
Just some information and my opinion, the decline in the number of sold units will scream on every headline and newspaper, yet sales overall have not dipped in dollar value except for a modest seasonal adjustment. Real numbers? 3 % less than spring is normal for November and December and add an extra 5% off for insecurity. All of this, I directly attribute to the stock market and Mortgage crisis in the United States. The last two or three days has seen a dramatic upswing in the level of activity of shoppers on my website. It is too early to draw a conclusion but I sense a renewed level of optimism. I have spoken to several customers that were looking to relocate from the US and they are much happier these days now that a new President has been elected. We look forward, both north and south of the border, of a definite change in many things.
We all need a roof over our heads. Property has always, and will always, be a good investment. I will never convince you to purchase a home, or sell what you already own. The decision is up to you. I do have a key to all listings that are for sale. Want to see one, contact Betty. Just want to chat, know that I am always available. I have taken classes to make an appearance on Google. This advertises your home to more interested parties.