This article is for all the people that spoke my ears off about a major crash in the real estate market for 2023, for the people that laughed at everyone who bought in 2021/2022 thinking this would be the year of demise, for everyone who has been driving me nuts trying to convince me that 80% of my client base will lose their home or default on their mortgage in 2023.. Well guess what….we are 6 months post 5% interest rates (yes that’s right, interest rates have been at 4.75% or higher since October 2022), and those on variable payments have definitely been going through tough times since at least September 2022.
How many clients do I have that defaulted on their loans? – 0.
How many clients do I know that cannot make their payments? – 0.
How many foreclosures have I seen hit the market? – Less than 2022.
The true statistics, brought to you by the GMREB – Single family home prices are down a whopping 8% since March 2022 [Regions of MTL/Laval]. Which means the home you would have paid $700,000 is now selling at $635,000. Remember when the media was telling us we would see a 24-30% drop in prices? Where did that go? At the end of the day, here is my point:
Real estate is and always will be an extremely safe investment when spread over the long term. Waiting for a market correction is very hard and unfortunately probably not in the books for you or anyone you know. There will always be good deals, I know tons of friends and clients of mine who bought during the pandemic, benefitted from lower rates and better prices. Just like i’ll know people in 12 months that used the 5% interest rates to buy a home at a 7-12% discount from 2021/2022 and call it a great deal in 2026, they are both winners… the common denominator was that they bought real estate, held it and re-sold for a profit in 3-5-7 years time.
At the end of the day, we are still not in a market that is showing big or grand negotiations, Maybe we will get there in the next 3-6 months, maybe it will take another 12-18 months or 3 years… the question is .. can you wait? and how long are you willing to continue waiting?
Remember, as Will Rogers once said, “Don’t wait to buy real estate, buy real estate and wait.”