Some said we would not see another '2007' for a long while. They were wrong! June and July of this year has been astounding for real estate sales in the GTA. Both homes and condos have exceeded sales and prices since last year and part of 2007. Despite the government outlook on our economy (gloomy) nothing seems to be stopping buyers from buying - and some paying top dollar (over asking) and entering bidding wars once again. Some people are puzzled and say 'If our economic outlook is so bleak, why the real estate frenzy?'. It's a good question. The current interest rates have a lot to do with booming sales. Today you can get a mortgage for under 3% and a 5 year fixed for just over 4%. It's incredible. Even though we've seen low interest rates in the past few years, these are definitely the lowest. On top of this, some people feel that with their past investments losing up to 45% of their growth on paper, they want something to invest in that's 'tangible'; bricks and mortar, a piece of land, a home. Other aspects helping the bourgeoning market is that in the latter part of last year (when sales came to a standstill) buyers were scared. They were uncertain of where they stood in their workplace. Would they be let go? Was their company downsizing? Would they be retired? Now, those buyers know and are more secure in their job futures. So these are a few answers to the rise in sales. Mainly, buyer confidence is back. And ultimately when the public has confidence, the economy improves.
Hopefully you'll be next!
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