Bubble Burst, Bubble Burst, Bubble Bubble Bubble Burst
I just read an article where an economist for one of our banks - okay, BMO - said Toronto is headed for a bubble burst. Later on in the very same article, at a point when the majority of readers have moved on and will never see this, a representative from the very same bank, BMO, said there is very little risk of a bubble burst in Toronto. So, who to believe?
Are you worried that the real estate market is going to crash? Well, before you make any rash decisions, be sure to fully investigate the reasons why real estate markets crash. One reason is a recession. Another is high interest rates, and a third is government restrictions, but the most important factor in my mind is supply. Don’t just go on your belief that prices are so high they can’t possibly go higher … I’ve been hearing people say that one for years, a decade, and clearly they’ve been wrong.
If you can afford a house and you need one, then buy one. But, if you think you might have to sell quickly then maybe you should reconsider. Like, if you don’t have job security you may not want to take on a mortgage. Just like you may not want to take on a car loan in that situation. Use common sense.
Look, I lived through the bubble burst of '89 (yeah, I’m that old) and things are not the same as they were then. My interest rate was 13 3/4% and we were in a recession. A far cry from where we are today.
If you have questions or concerns about real estate or want to buy or sell property please reach out to me, I’d love to help.