There are a ton of opinions regarding real estate, and there is no shortage of experts willing to share their opinion on the Mississauga real estate market and what the future has in store. For me, I always use the The Golden Real Estate Rule and common sense when looking at the real estate market regardless if it’s to help a client or for myself personally.
So here is the Golden Rule- prices in real estate are based on Supply and Demand. It’s really that simple. When there are more buyers than homes available, house and condo prices go up. On the other hand when there are more homes for sale than buyers (as we are witnessing in some areas of the US)- prices go down.
So I know what you are thinking, ‘why is Jeff O’Leary telling me something I already know?’
The beauty of this is that it is so simple. Sure other factors affect supply and demand, but when you hear the news or an opinion claiming some ‘breaking news’ just ask yourself, ‘what will this do to the supply or demand for homes in the next 1,5 or 10 years?’
If you always take this approach and do your due diligence and ignore the sensationalism, you will be well on your way to making smart real estate investment decisions!
I'm looking to buy a condo in downtown Toronto later this year but I've heard rumors that prices are going down. What's your opinion?
Interest rates are certainly a factor, and if they go up it will become more expensive for the majority of people (who have mortgages) to own a home. However, you have to balance that with other factors such as employment rates, immigration, how well the economy is doing…ect. If you look at the bigger picture it will help you make a better decision. GL!