Are the Gurus able to predict the market?
Tuesday Apr 19th, 2022
I am going to share with you a current event that happened in a Townhouse Complex in Oakville. This example I am sharing will demonstrate that even the gurus cannot predict what will happen in the real estate market unless they have a crystal ball and, as far as I know, none of them do.
In late December 2021, the unit went up for sale in the complex and sold in ONE (1) DAY for overasking. The property was listed for $949,000 and it sold for $1,118,000. I am sure you like everyone else would say "Gee, he was lucky!" The last sale was $980,000 in July, 2021. Here is the history of this unit which will show you we have no control over the market and indeed the owner was indeed lucky as the story unfolds.
What I am sharing with you here is public information. Below is the background story on this unit in 2017 for $740,000 (which was in the height of the 2017 market) and tried to sell it in 2019, reducing the price 4 times from July to October 2019:
July, 2019 at $749,000;
September 2019 twice to $744,000 and $734,000; and
finally in October 2019 reduced to $699,000;
still the unit did not sell.
In his wisdom, the owner decided to take the unit off the market. In hindsight, he is probably now very happy he took it off the market and rented it; sometimes things happen for a reason.
My illustration here is to help you understand that the real estate market can change on a dime and I am using this unit to do an autopsy of what can happen in a volatile real estate market. The market is made; not by the seller nor the agent, but rather by the buyer and what he/she is willing to pay.
If anyone has called me and listened to my voice message here is what I say "Today, is a great day to buy, sell or invest in real estate". I am sure you have heard the saying "Just like planting a tree, the best time to have done it was 20 years ago and next best time is Today. Be mindful, however, to buy and sell for the right reasons and not overstretch your funds, and that you are investing and not speculating.
I would love to have your questions and comments, please email me at firstname.lastname@example.org.
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