Toronto is doing fine

This quote is from Warren Buffett in 1979. The world’s most successful investor sums up the simple reason why 1% of the world controls over 50% of the wealth. It is that 1% that moves boldly when others sit on their hands, worrying about what could go wrong.

Honestly, the constant barrage of negative media attention with regards to real estate and equities has become absurd. Nowadays, there is too much media, an endless void that needs to be filled by vacuous talking heads. It is hard for regular people to gain perspective with the constant media backed threat of bubbles and crashes. I have been at this for 23 years and I have seen 3, perhaps 4, recessions of one kind or another and I can tell you with certainty that never before has there been so much media time devoted to this subject, and it is not due to any fundamentals; it is due to the need to fill air time. They have to talk about something.

The time to buy anything is when people are selling; the time to sell anything is when people are buying. These two simple laws are how one can create great wealth, following them is another thing. The other factor that is vital is time, and patience.

I am amused by the idiotic reporting I’ve seen lately in the local and national newspapers. The Toronto Life magazine recently published a “Bubble Trouble” feature on the cover, and of course BNN has been hammering home misleading facts and statistics about the national and local level real estate markets for months.

The truth sells less ad space and reduces circulation because it is less catastrophic. Does anyone really believe Toronto’s real estate market is due for a large correction? This is the most patently absurd theory I’ve heard in 10 years. Why, after a debilitating, horrific 9 month economic meltdown did our local market bounce back so fast? And why now would it collapse? Those of you sitting on the sidelines are going to miss the boat again, as you have for the last 19 years. I suggest you wait until you get a clear sign that you should buy; however, you may be interrupted in the meantime by death. How sad, putting a hold on one of life’s best experiences; owning a home, to wait for a clear sign from above that now would be the right time to buy.

As for the recent misleading stats and facts, I’ve been witnessing for months now, I will summarize what I believe to be true. Many properties are selling for more than the asking price, most for full price. For July 2010, the average central Toronto sold price to asking price ratio was 98%. It was 98% for August as well. In July, the time to sell was 33 days, and 36 days for August. If you listed your condominium this summer for $250,000, it was very likely that it sold for $245,000 in one month. C’mon people, does that sound like a problem? The volume of MLS sales in July 2010 may be down 34% over July 2009, but this needs to be kept in perspective. July 2009 was the best July on record, beating the previous best July by 11%. If we based all of 2010 on July’s 6564 sales, we would have 78, 768 sales, or the 7th best year on record and August numbers were similar. Of course, that won’t happen because this summer, like virtually every other summer was slower than the spring and it will be slower than the fall. I expect 2010 to finish up with 88,000 sales. Only 2007 will go down as a better year overall.

The new development market is still very busy and will likely stay busy for the foreseeable future as we struggle to find a way to deliver the required 50,000 homes per year to keep up with the real population growth.

Our city is in great shape. Our real estate market is in great shape. The media is filled with journalists trying to put bums in seats. Scary economic news sells. We are through the worst and if anything, expect prices to rise for the next several years in Toronto.

Source: Brad J Lamb | torontocondos.com

How to choose a real estate?

An Assessment of Your Needs
One of the first questions a Realtor will ask is, Why are you moving? A REALTOR® will also explore any time constraints you might have (perhaps imposed by the need to relocate for employment), your financial situation and any future plans.

A Plan to Find Your Dream Home
A Realtor will help you identify what you want in your new residence. A pool? A garage? An extra room? A particular building design? What about the neighbourhood? Proximity to schools or work? A Realtor will compare your needs, wants and budget with what is available on the market and make recommendations that save you time and effort.

He or she will also accompany you as you view houses and help you assess their suitability and price. As an expert on a property, a Realtor can provide facts on the neighbourhoods, the cost of heating, the condition of the furnace, and so on. In other words, he or she will work with you to achieve your dream.

Access to Properties for Sale
Multiple Listing Service or MLS is an exclusive service accessible only through a Realtor and it can be a valuable tool. Through MLS, the details of a wide variety of listed properties are made available to the Realtor you work with. That can save you a tremendous amount of time and effort in your hunt for the right home.

Knowledge of Financing Options
Realtors have extensive knowledge of the financing choices available to home buyers and there options and obtaining financing at the most attractive prevailing rates and terms.

A Skilled Negotiator
Realtors are experienced in arranging fair deals. He or she will assist in negotiating an offer, acting as a mediator to head off potential conflicts between you and the seller, and draw up a legally binding agreement.

Honesty and Integrity
Most real estate professionals in our province are member of the Ontario Real Estate Association (OREA) and only members of OREA can call themselves Realtors

When you work with a Realtor, you can expect not only strict adherence to provincial laws, but also adherence to a Code of Ethics. And that code is very important to you because it assures you will receive the highest level of service, honesty and integrity.

Highest Professional Standards
Before receiving a real estate license, candidates must successfully complete an extensive course of study developed by OREA on behalf of the Real Estate Council Ontario. That is only the beginning: in the first two years of practice, licensees are required to successfully complete three additional courses as part of their articling with an experienced broker. In addition, all licensees must continue to attend courses throughout their careers in order to maintain their license.

Source: vlappo.ca