Q & A with Kimmé

The world of real estate is dynamic, exciting and ever changing. One of the many benefits of being with Sotheby’s is not only the beautiful marketing we bring to each and every one of our listings, our highly respected global brand and extraordinarily well skilled agents but what sets us apart from any other real estate company is the collaboration and sharing of ideas and strategies which help me bring my very best self to you.

This involves being current on industry trends and what’s going on in the market but also on knowing how to alleviate real life day to day anxieties of people trying to decide whether to buy, sell, invest or rent.

Here are answers to some of the questions you may be asking…

My house isn’t worth as much as it was a year ago. Did I make a mistake?

The answer is definitely not. Why not expand your thinking? If you look at historical prices over the past 10/15/20 years and beyond, you’ll notice an upwards trend despite seeing blips and downward turns. Prices are already starting to trend upwards again with month over month increases. There’s no question that the value of your home will surpass the amount you paid for it and five years from now, you’ll wonder why you were even wasting time worrying about this. Enjoy your home, enjoy your life! Real estate is an appreciating asset. It always has been and it always will be.

Is it a good time to buy right now with interest rates so high?

There’s no good or bad time to buy. Think about your own circumstances. Can you afford to buy? Do you want to buy? If the answer is yes to both of these questions then yes it’s a good time to buy. It’s impossible to time the market. While not at pandemic rock bottom levels, mortgage interest rates are still very low. Try to work with a savvy mortgage broker who can advise you on the best products and terms to fit your situation. The important piece to this is that you are in the market. So go for it!

If I buy now, when will my home generate a profit?

Good question but a little tricky to answer. Real estate like any other investment needs time to mature and appreciate. If you buy now and your property is in a high demand area, is a good solid home or well built condo close to transit, then your home will generate a profit. This may be in 6 months, 1 year or in 3 years. Your mortgage payment is an excellent way to save money and as the market continues to strengthen your equity will grow. Once you have some equity, you can think about using that equity to invest in home improvements, in the stock market or to expand your real estate portfolio by buying a rental property. Have you seen the rents these days? Rents have increased exponentially due to the housing shortage. The bottom line is that investing in real estate is an excellent means by which to build wealth.

Should I upgrade to a bigger house even though my condo has decreased in value?

It’s a grrrreat time for you. Although you may not get as much for the condo now, you will be buying in the same market which means that on the purchase, the house you couldn’t afford 2 years ago is now within reach for you despite higher interest rates. Another benefit to you is that if you have an existing mortgage that you got at a very low rate, you’re able to port that mortgage which means that the amount you owe on that mortgage can roll into a new mortgage at the same rate as when you purchased the condo. It’s only the remaining balance of the new mortgage that will be at a higher rate. The only caveat is that you cannot change lenders.

Why should I believe you when the media is saying the market is going to crash?

Well I have to give credit to the media because lately, there have been some very good reports on what’s happening here in Toronto. Articles about the severe shortage of inventory and resultant bidding wars and news bites suggesting that the market is rebounding and prices are rising are all true.

However, for as long as I’ve been working in real estate (18 years), there have been so many media reports of a “crashing market”. This simply isn’t true. The market isn’t one monochromatic stat. The reality is that there are micro markets and it’s not one size fits all when it comes to the market. Some areas are going up in value while other areas are stable. Some condo buildings even in a great location simply aren’t appreciating the same way others are. This could be a result of short term rental allowances or poor quality construction. The media doesn’t capture the nuances of the market. There’s been a huge focus on the large drop in sales and I think people have automatically assumed that prices have take the same trajectory. Sales are down by a significant amount but prices are not.

If you want to know what’s happening in real estate, go to the source. Go find an experienced full time agent who knows the psychology of the market and of what makes buyers and sellers tick. Remember that facts can be easily misperceived and distorted to fit someone else’s agenda. Don’t have a herd mentality. Think about your own situation and weigh out the pros and cons of your decision. Speak to a trusted advisor. Sometimes when everyone else is going one way, you’re smart to go the opposite way. Find out what works for you.

As always, I’m happy to help you facilitate your best decisions. Thank you for your support and referrals. I’m never too busy to help out!

Happy Spring! 🌷

Kimmé