In the eighties the world was introduced to a new toy known as the Rubik’s Cube. There ensued a massive uptake of the toy amongst the general population despite the fact that the only way most of us could actually solve the puzzle was to take the stickers off and put them back on so it appeared as though we had completed the Cube. Anytime something like the Rubik’s Cube comes around the question of Fad vs. Trend begins to be talked about.
As we settled into our sales meetings this week the topic of the day was definitely what was happening to the market and if the recent government changes have had the desired effect in increasing the affordability of housing in the city. Much of our conversation centered around the differences between the massive downturn in the market in 1989 versus the brief pause in the market we experienced in 2008. While admittedly none of us actually own a crystal ball, the general consensus was that these past few weeks will likely be a pause in the market and not a large correction as some Sellers are fearing and most Buyers are hoping for. What we may be seeing as a result of this pause is a move towards more realistic pricing and less of setting a low asking price and letting the market show us the true value. All the more reason to make sure you hire a Realtor that knows how to properly price and market a property.
As Spring comes upon us and the trees and flowers begin to bloom, we Realtors often have to remember to stop and smell the roses lest we wake up one day to find ourselves in the dog days of summer. Unfortunately, given the frenetic pace of a usual spring market many Realtors miss the awaking of spring entirely, instead focusing on helping their clients to buy or sell the home of their dreams. Even after the announcements from the provincial government of changes to the industry, the market seemed to continue down its usual path through a freshly blooming garden.
The sky is not falling. The pigs are not yet flying. And we are pretty sure that the price of real estate in Toronto is going to keep climbing, though perhaps not as quickly as it was already this year. But really, maybe it will. After the announcement of the Government of Ontario’s ‘Fair Housing Plan’ our in-house experts pored over the information looking for whatever information might lead us to think the suggested changes would improve housing affordability in the GTA.
Last week the real estate industry took a slight pause while several major religions celebrated their holiest of days all in the same week. In real estate the coming of spring normally heralds the beginning of the annual game of trying to show houses while the city, in an apparently random manner, shuts down streets and neighbourhoods for prolonged construction projects – BEEEEEEEEEEEEEEEEEEEEEP – We interrupt this regularly scheduled Bosley Insight for breaking news from the Provincial Government. It seems that the powers that be at Queen’s Park will be making changes to ‘slow down’ the real estate market in the GTA. We wish we could tell you what this means but, like you, we will need a week or so to see how it all shakes out. Stay tuned next week when we can report back on how pending legislative changes will affect Toronto’s buyers and sellers.