Predictions, predictions...and nothing new!
Monday Jan 09th, 2017Share
Spanish philosopher, poet and novelist, George Santayana, once said "Those who cannot remember the past are condemned to repeat it."By studying history, we hopefully learn how do avoid making the same mistakes over again. Hopefully, we learn how to protect ourselves and how to minimize our losses. Markets are bound to go up and down due to many reasons and many of them are difficult to predict as the history has shown. Thousand of economists make an effort, but no one can forecast a future with a certainty. Perhaps because markets rely more heavily on the human nature than on the laws of economics.
Toronto’s real estate market have already experienced an enormous growth several times in the last century. The last one ran between 1986 and 1989 and the average price of a #Toronto home grew between 20-30% annually. http://www.repmag.ca/news/looking-to-the-past-to-determine-the-future-219267.aspx
And this incredible increase ended in the collapse of the real estate prices by the end of 1989. When this remarkable market is going to end for Toronto and the Greater Toronto Area (#GTA) real estate market and what will the future bring again, nobody knows for sure. And while I do have a minor in Macroeconomics and Monetary Policy, I do not do economics for the living. So no matter how many times I’ve been asked for the last couple of years about my view on the market and if it collapses in the near future, my answer remains the same. I do not know!
However, as an experienced real estate professional, I always give my clients and my friends the following advice: Buy only when you’re 100% financially ready to buy, sell when you need to sell, and always make rational decisions in all your the real estate dealings. In this case, no matter what turn the market takes, you will be able to withstand it. I’m always happy to answer any of your questions about the real estate.
Happy New Year and may the 2017 bring you all the best in everything!
Olesa Islamova, Real Estate Sales Representative | Realtor®
Royal LePage Your Community Realty, Brokerage
Please Like My Facebook page!