Comments on: Buffet: Be Greedy When Others Are Fearful http://www.primetorontoneighbourhoods.com/2008/10/21/buffet-be-greedy-when-others-are-fearful/ Prime Toronto Neighbourhoods | Toronto Real Estate | Lawrence Park Homes For Sale Thu, 26 Aug 2010 02:33:51 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Rosalin http://www.primetorontoneighbourhoods.com/2008/10/21/buffet-be-greedy-when-others-are-fearful/comment-page-1/#comment-58 Rosalin Mon, 27 Oct 2008 02:13:09 +0000 http://primetorontoneighbourhoods.com/?p=985#comment-58 Dear Ed: I fully agree with your statement about not seeing “a real correlation between Toronto real estate and decline in stocks.” However, the upward direction of both has changed. What I wanted to point out is that because of the general optimism which prevailed in our housing market for over ten years, many home owners bought their replacement house without any concern about not having sold their original home first. Today’s market does not allow this privilege. Therefore, those who bought recently without having sold their home, have created some unusual opportunities for buyers to purchase at “significantly adjusted prices.” As you can appreciate, most of these sellers can not afford to own both homes, and will therefore accept a lower offer today in order to sell their current home and close on their new house. Sellers will adapt to this new reality, so this current opportunity for buyers will not last. Dear Ed:
I fully agree with your statement about not seeing “a real correlation between Toronto real estate and decline in stocks.” However, the upward direction of both has changed.

What I wanted to point out is that because of the general optimism which prevailed in our housing market for over ten years, many home owners bought their replacement house without any concern about not having sold their original home first.
Today’s market does not allow this privilege. Therefore, those who bought recently without having sold their home, have created some unusual opportunities for buyers to purchase at “significantly adjusted prices.”

As you can appreciate, most of these sellers can not afford to own both homes, and will therefore accept a lower offer today in order to sell their current home and close on their new house.

Sellers will adapt to this new reality, so this current opportunity for buyers will not last.

]]> By: Ed Pilgrim http://www.primetorontoneighbourhoods.com/2008/10/21/buffet-be-greedy-when-others-are-fearful/comment-page-1/#comment-59 Ed Pilgrim Sat, 25 Oct 2008 03:41:29 +0000 http://primetorontoneighbourhoods.com/?p=985#comment-59 Interesting article Rosaliin but the stock market has gone down 30%. In Toronto, prices have not declined anywhere near this far so I do not see a real correlation between Toronto real estate and decline in stocks. Should we see a correction of 30% it would definitely be a good time to buy for a long term hold even if we see further declines..but from all predictions this may not be in the cards. It is pretty evident even in good times that real estate is a good hedge against inflation.. John Pilgrim Interesting article Rosaliin but the stock market has gone down 30%. In Toronto, prices have not declined anywhere near this far so I do not see a real correlation between Toronto real estate and decline in stocks. Should we see a correction of 30% it would definitely be a good time to buy for a long term hold even if we see further declines..but from all predictions this may not be in the cards. It is pretty evident even in good times that real estate is a good hedge against inflation.. John Pilgrim

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