I love that Warren Buffett quote “Be fearful when others are greedy, and greedy when others are fearful”. While he was mainly talking about the ups and downs of the stock market it could also apply to the housing market as well. The past few years have been a boom for people selling real estate as almost every sale went for well above the asking price.
However things may be about to change. Interest rates have climbed dramatically in the past 3 months, with the variable up by 75 basis points and the fixed up over 130 basis points over the same time period. As a result the market in Toronto has cooled by 27% vs the same time last year. While I don’t think that this will shift to a buyers market it may end up levelling the playing field until the inflationary pressures level off.
All markets go in cycles, as long as we realize this we will make out just fine. The recent steady rise of real estate prices will not last forever, nor will the current down turn of the stock market. If we take Warren Buffett’s attitude and advice to heart and see what’s going on around us and just plan accordingly, then we will insure a prosperous future. Sell when those around us are being greedy and buy when everyone else is selling.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here