One thing that has been overlooked in Toronto and many parts of the GTA over the past decade or two, is that house values can rise and drop over time, with the hopes (and reality mostly) that when it was time for one to move, the property would have increased in value.

This has held up and over the past twenty years or so, we’ve become accustomed to only the “rise” part. As our city and the GTA have grown in population, the demand has been high for home ownership. 

Many factors have contributed to the rise, such as older homes being bought and renovated, or torn down and then resold for more money. After the financial crisis of 2008, there was a huge uptick in residential real estate as an investment. Well, people buy investments with the expectation that they will increase in value. Then there is the much talked about immigration factor. This has been well understood and for those of us in the real estate industry, we see first hand the diversity in buyers throughout the GTA. 

All have contributed in some way to the rise in values. Throw in periods of low interest rates and this party has kept on keeping on. 

But the drop is healthy in markets. In the stock market it’s actually welcomed, and frequent, for anyone who is invested knows. 

So when taking in the talk through media, dinner parties, family gatherings, etc. Remember this. As markets rise, todays seller may have been a buyer back in 2010. The gap between the purchase price then and the current market value now, is still very good. I’ll write more about this in upcoming newsletters but the point I want to instil is that the real estate market throughout the GTA is quite large, and certainly complex. 

Varying price points, housing types, locations and demographics all play a role. Same goes for lifestyle choices, work considerations, and sometimes plain old FOMO. What really matters is your personal situation on buying or selling. Not everyone’s is the same.

So please keep this in mind as the doom and gloom is spread and reflect on how this impacts you and your family? For most, everything is going to be okay. And if you fall into the category of it being disadvantageous, reach out for advice. Speak with your bank or mortgage broker on options. Call me for neighbourhood and property values. Help is out there, and we are more than happy to be of assistance.