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Don’t be Concerned About the Latest Housing Market Report

Yes, according to TREB, the housing market continued its sales decline for a fourth consecutive month. What you will find however, is that the current slowdown is merely psychological.

Aside from the optics of that report appearing concerning and negative, the truth is we shouldn’t be concerned about it at all. In fact, we prefer this market to that of February and March when the market was driven by irrational behavior which was clearly unsustainable.

Sellers still want March prices and buyers expect a price correction of 25 percent. The reality is simply that neither will happen. Prices are still 15 percent higher than a year ago, which is good news for sellers.

Please Also Read: Toronto Renters: It’s Time to Think About Becoming a Buyer..

When you look at the Toronto market, the underlying factors that drive this market have not changed: ongoing population growth, low-interest rates, and strong employment.

Did you know that Toronto is now considered the top office market in North America with the lowest vacancy rates? That all points to long term growth in our market!

Here’s some interesting news: For the first time, the condo market is outperforming the single detached market.

What’s the reason? It’s possible that buyers are coming to the realization that they cannot afford a house in this market and that condos are the most affordable and lifestyle-friendly way for millennials to enter the market.

Also Check Out: When Looking for a New Home Should You Buy or Sell First..

Looking at the downtown condo market, prices remain almost 30 percent higher than a year ago. It all makes sense now that condo building within the Toronto area is back at peak construction since the 2012 recession. Will you be entering the condo buying market anytime soon?

– Written with files from Re/max Condos Plus

Guy Yarkoni has been a Real Estate professional for over twelve years.  He is a licensed Sales Representative and Accredited Buyer Representative as well as a Member of the Luxury Home Institute.  He is in the top 1% of Realtors selling condos in Toronto since 2007. His excellent sales record has been recognized with the induction into the Re/Max Hall of Fame, Re/Max Platinum Club Membership and in 2012 was credited as the #1 Sales Representative out of all Re/Max Condos Plus agents.

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