History does repeat itself. The question is … do we heed any of its lessons?
For those of us who have been selling real estate in Toronto for more than two decades, the unfolding chain of events we are beginning to see in the financial sector and in the car industry is like watching a movie re-run. In my real estate career I have experienced more than a handful of booms, busts, slowdowns and recessions.
Some of those times were very difficult, personally and for my clients. Twenty four per cent interest rate mortgages, a briefcase full of clients’ houses for sale, and not in a buyer in sight, have made me a better real estate agent.
Recently when the buying frenzy began to slow down, some real estate agents began to look in the rear view mirror for signs of reassurance. They wondered whether the market had stopped for good, or was this market shift the result of the cold winter we had just been through.
Today, both home buyers and sellers are also turning their eyes to other industries to see comforting sings that things are still OK. So how are other industries doing these days? Well … as Ronald Reagan would say, things are starting to look a bit scary;
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The financial markets “PANICKED” some headlines this past Friday read.
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The composite index for the S&P/TSX plunged 957 points in less than three days. John Stephenson, senior vice-president and portfolio manager at First Asset Investment Management said “The sentiment has gone from euphoria to panic”, “Right now people want out at any price.”
- The figures for automobile sales are out and the numbers there also are looking very dim. Canadian vehicle sales suffered its worst performance of the year in August as the slump that hit the U.S. market crossed over to Canada. Car sales dropped 7 per cent following big declines at Chrysler Canada Inc., General Motors of Canada Ltd. and Honda Canada Inc.
- Employment growth is slow “and people are getting a bit more worried that [the economy] is going to slow down,” noted Dina Cover, a Toronto-Dominion Bank economist.
Where do we go from here?
As I have written before in this blog, caution is the word of the day.
The tough markets I have been through have taught me a lot. I have learned some sound lessons on how to cope, develop a pragmatic approach in the face of financial uncertainty in the market place, and still be able to come out smiling when it’s all over. Without appearing falsely modest, for me it’s been a case of … been there, done that. And for all those challenging times I am grateful. They either make one bitter or better.
In this site, I want to pass on as many of those experiences, in order to help you ride the highs and lows of our Toronto real estate market.
The times for unbridled enthusiasm regarding housing decisions are changing. Today decisions must be carefully considered in other to avoid major financial losses.
If you are in the middle or a major home buying or selling dilemma send me an email, or call my direct line (416) 482-8330 ext. 3519
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