I told you so: Did you see this terrible sounding headline?
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Well, I hate to say I told you so, but check this out. The latest headline is in from the Huffington Post, and it reads, “In Toronto’s housing market, the party is really over. Latest data shows sales of low rise homes were down 45% in the second half of February.”
As we’ve been talking about for the past two months or so, and we’ve been preparing you and letting investors know that this would be happening, that is, the headlines are gonna start to look really bad. And this is a good example of one of the first ones we’ve had where the media is gonna latch onto the fact that sales numbers compared to last year are dramatically down. But what they aren’t going to highlight is the fact that compared to historical norms, they’re about normal or in some cases, in some markets, they’re actually up.
When you talk to actual real estates on the ground and what’s happening in the resale market, they will tell you that in the city of Toronto, everything is doing really well. Condos, houses, most properties are selling over asking. There’s definitely a shortage of properties.
The only segment of the market in the GTA overall that is sort of struggling, that is a buyer’s market, would be low rise detached housing in certain pockets of the 905. Not all pockets, but certain pockets, particularly in the north of the city.
Again, this is what we can expect over the next four to five months, until we reach sort of July/August of this year, and that’s when the market from the craziness of 2017 started to come back down to normal, and that’s really when the price gains that we saw in the first half of 2017, we gave those price gains back in the June, July, August period. The prices that we’re seeing now in some markets are lower than they were a year ago, but the price reduction did not happen now. It happened six, seven, eight months ago, back in the summer of 2017. So month over month, the market is consistent.
There you go. Hope you enjoyed this and I hope this helps you understand the article that you’re reading in the news and what’s happening out there in the market. Make sure you go ahead and like and share this video if you appreciate it. Thanks, and talk to you soon.