By: Michael MacDonald

Mindset in a "CRAZY" Toronto Real Estate Market

Tags: Toronto, Market, Mindset, Affordability, First Time home buyers, investors, real estate

A few days ago, I was sitting in my condo lobby and overheard a Real Estate Sales Representative talking about the overvalued market and that it makes more sense for consumers to rent and not buy. My first thought was that he could’ve been talking to a potential client who is willing and able to buy and he destroyed his chance of ever working with him.  My second thought immediately went to what I have been experiencing and learning over the past 6 years of my life working in a Real Estate office.
 
If there is one thing that can be said about what I’ve learned over the years, it is that mindset is everything. Given the choice of having a positive or a negative mindset, my guess is that most people would choose to have a positive mindset.  Why is it then that so many people are afraid of this market and believe there is no opportunity to buy, sell or invest in real estate?
 
I believe perhaps one of the reasons is that the media is painting a very grim picture about the reality of the market.  I subscribe to Google Alerts that have to do with Toronto real estate, and it’s a pretty safe estimation to say that a majority of the articles that come through aren’t leaving a whole lot of room for optimism and hope.
 
Another reason could be a slew of Sales Representatives who are talking to their friends, family, coworkers, potential clients and even current clients about the fact that it is a tough market and they aren’t making any sales. “No one wants to list with me.”  “My Buyers are losing faith in me because I can’t find them a home.” “The only way that I can compete is if I cut my commission.” One of the corner stones of mindset and something I’ve learned is that “People will grow into the conversations you CREATE around them.”
 
The key word in that statement is create.  The media is creating stories about the market and the public is hearing them and that is their first thought when thinking about real estate.  Some Sales Representatives are having these conversations with their sphere and that becomes their first thought when thinking about real estate.  One of the things that happens with both positive and negative thoughts is that they snowball out of control until it becomes difficult to get out of that negative mindset. Knowing this, why not choose a positive mindset?
 
I should qualify my last few statements by saying yes, the market is overvalued. There is no question about it.  Average house prices are at an all time high in the City of Toronto. Real Estate Sales People have an obligation to disclose all material facts and work in an honest and trust worthy manner when dealing with clients and customers. 
 
So be wary of the Sales Representative who tells you that there are no problems. These salespeople do not have your best interests at heart.  You also need to be wary of the realtor who is living in the negative mindset because more likely than not, that mindset will not allow them to be able to work in their highest capacity and may affect you being able to find the home of your dreams!
 
For the Sales Representative I overheard speaking to a potential client, know that even though your heart may be in the right place and you are giving facts about the market, your message that there is little hope was abundantly clear.  For the potential Sellers and Buyers out there who are thinking about real estate, don’t let the negativity surrounding the current market get you down! Align yourself and your mind with like minded people and there is no limit to what could be possible.