December 2008 Toronto Market Report

Greetings!

I would like to take this opportunity to wish you a happy time over the Holidays and a healthy and prosperous journey throughout the New Year. This past year has been a very good one for me both personally and in business, thanks to the many loyal customers and friends who have given me their vote of confidence. My sincerest thanks go out to all of you.

The slow market we are in right now is a combination of the world financial situation as well as a correction cycle following the long run that we have experienced in the Toronto real estate market. The pessimists in our world are expecting that this softness will continue well into next year, and even beyond, while the optimists are anticipating that some good news on the world financial front will help things to turn around. Our Canadian government does not seem to be helping in this regard at this moment. The delay and confusion that is being created by their collective ineptitude seems certain to delay any good news that we might have hoped for.

Personally, I am hopeful that we will see some resolution starting to take effect early in 2009 and that we will see some positive things happening on the world front.

From a Toronto real estate market perspective, my colleagues and I have a lot of buyers hovering and waiting for the right time to buy. Some are waiting for the next shoe to drop, while many others are waiting for a sign of some sensibility returning to the world economic markets.

I believe that in Toronto we will continue to see price pressure on properties over a million dollars, but will start to see some signs of recovery in the 500,000 to 800,000 dollar range.

Condos are still enjoying a positive market, likely a factor of the lower price point being more affordable to first time buyers. In addition, investors are able to get reasonable returns in a good rental market, making condos a solid long term investment.

For buyers, right now I would recommend taking a good look at what is available. There is an excellent selection of properties available at all price levels. Prices are down from last year and interest rates are also very low. This week, the 5 year rate has come back down to 5.25%. If you are able to find a home that suits your needs, this is an excellent time to buy.

For sellers, if you are looking to trade up there are some excellent prices and a fantastic selection out there. If you price your home competitively it will sell, even in the current market. You will then have a great selection to choose from, and you may even be able to negotiate an offer on a new home that is conditional on selling your property. I’ll be pleased to talk directly with you about how to do that.

If you are moving out of the market area, or selling for some personal reason, I’ll be pleased to talk through the options that are available to you, and the pros and cons of selling now vs. waiting for the Spring market.

Again, my best wishes to all. I hope you are able to enjoy the Holidays and find a bit of time to relax.

Best regards,

Armand