Market Watch * June 2021 * The Patios Are Open
The question I get asked most often is, how is the market? Depending on when you ask me, the answer may always be different. The market in Toronto is ever changing and will have peaks and valleys within the calendar year. Timing, as with all investments, is everything. When I think back on all of the highs and lows in the market they have been driven by FOMO (fear of missing out), which is a form of speculation. One could argue that speculation drives the market and not supply and demand, however, I believe the latter. The short supply of homes in great locations has increased the demand, resulting in a significant return on investment in Toronto. Therefore, demand remains high and supply remains low.
Is the Real Estate market going to crash? Is the stock market going to crash? More questions, everyone is different. It depends on where it’s located and for how much. It depends on your risk tolerance or fear management. It depends on your market knowledge. My short answer leans to location, location, location. It’s not really about kitchens and bathrooms, because when the dust settles, the value is in the location of the land. The stuff depreciates and the land appreciates, so Real S. Taitt is always a great investment.
Overall transactions were down by 8.9% in May 2021 compared to April 2021, however the seasonally adjusted average selling price remains stable at 1.1%. This means we are approaching a stable market into the 3rd quarter and we’ll have to wait and see what happens in the 4th quarter of 2021. Keep in mind that the border is closed, travel is down and immigration has somewhat halted during this pandemic, so take advantage of this slower market, because once things fully open up again demand will definitely increase, which should increase speculation. Stay safe and get vaccinated and I hope to see you soon.