Headlines from the National Bank and CMHC over the past two weeks scream massive depreciation for Toronto home prices. Massive price drops are apparently on the horizon. CMHC has gone a
Going Back To Our Future
In 2007, the Real Estate Board was on fire. Over 93,000 sales took place that year. Confidence was at a high heading into 2008. In 2008, the market took a hit due to the global recession lead by the United States. All in all, it was a huge setback to the momentum that had carried over from 2007. The Toronto Real Estate Board ended 2008 with 74,552 sales that year, down about TWENTY PERCENT (20%) from 2008.
Drawing parallels, we saw the Real Estate Board post phenomenal results in 2016 and 2017 as well. In 2018, we had to deal with the "recession" caused by the Ontario Government (yes, let's give credit to those that caused it). In 2018, we saw a decline of TWENTY PERCENT (20%)!! Sound familiar?
Let's go back to 2009 now. There was so much pent up demand from those that didn't buy in 2008 while they waited for the market to bottom out. Heading into January of 2009, consumer confidence was at a high with the reality that the recession down south did not affect us much at all. Credit our conservative banking system for saving us from the global turmoil and pulling us through. In 2009, the market rebounded with over 87,000 sales!! This, despite inventory levels being down due to sellers holding on to their homes for the fear that they wouldn't realize as much return as they anticipated. 2009 units sold were up 17% over 2008, a solid rebound year for sure. People didnt want to wait till the spring to buy in 2009, they came flying out of the gates in late January and lit the market up. The confidence continued from 2009 right through to 2017, and we saw tremendous growth in GTA Real Estate over those years!! WIth inventory levels remaining at all time lows, we saw multiple offers on every hot property that was introduced to the market because supply could not keep up wth demand. Bidding wars were the new normal.
Why does this mean anything to you? Who cares about what happened 10 years ago? I'll tell you why this is important to you and why you need to take notice.
When we saw the results for 2018, we noticed we were down about 20%. What were we down for 2008? Yes, 20% as well. As we start off 2019, there is a lot of pent up demand from those that were waiting for the market to bottom out. Sound familiar? Consumer confidence is at an all time high. Inventory levels are much lower than through the last 18 months, yet demand is strong. Multiple offers are back as supply struggles to keep up with earlier than anticipated demand. This sounds like 2009 all over again right? It's like we just went BACK to our Future!! Buyers that sat on the fence last year: you best get into the game fast. Sellers that didnt want to let go: THIS is a good time to get on the market and maximize return on your greatest investment.
And Realtors .... if you're waiting for spring to get going, you're going to miss the bus. Sure, 2018 was the new 2008 BUT 2019 is the new 2009 AND Winter is the new Spring. We're going back to our future baby!! Let's go!!
Asif Khan is a Certified Luxury Home Marketing Specialist and Owner at RE/MAX Prime Properties, Asif is a member of the CLHMS Diamond Guild, the RE/MAX Hall of Fame, Diamond Club, Chairmain's Club, Pl....
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