Commenting on Maclean's January 2013 Issue -  Crash and Burn

I want to briefly comment on the latest Macleans issue suggesting that 2013 is the year that the real estate market crashes in Toronto. Firstly, I think it is quite interesting to start the year off with such a negative forecast for the 2013 real estate market when we are only a few days into the year. For more than 7 years, people have been predicting a crash in the real estate market.  If you keep saying crash, crash, crash, eventually with all the bad press one of these publishers will have to be right, or do they?

I will be one of the first ones to admit that the Toronto has so many condo buildings under construction that it is hard to keep track of.  The rate of growth has been tremendous and maybe a little ahead of the demand. However, in the article, all the information provided only indicated the amount of condo units being built and never mentioning the number of people that immigrate to Canada and how many relocate to Toronto each year. Toronto has become a major city around the world, and relatively speaking our prices are low to other global urban cities. It is true that there might be a surplus of units in the short run, but in the long run, condo living will become the norm for most people living in Toronto. Owing a house will unfortunately become unattainable for many, filling the condo units with families and renters. 

The real slow down in the real estate market has been a result of the changes to the mortgage regulations changing the maximum amortization period from 30 to 25 years and the amount of down payment required to buy a home. The changes caused more of slow down than expected and are said to hold steady to balance off again.

I always say that real estate is a great investment especially for the long run. You have to know what your objectives and goals are. I would be happy to discuss strategies and real estate planning with you anytime for you to decide when is the right time to buy or sell.