What About The Toronto Housing Market?

One of the most challenging topics I face as a realtor these days are defencing the current Toronto real estate market in the face of a global economic crisis. It is important to differentiate between global economies, and local economies. Real estate is a local market and is not directly effected by global controls. This mean the adage if the States gets a cold, Canada blows it's nose may ring true for some industries but not for real estate as we know it. To further the point the Waterloo real estate market is significantly different the then Toronto real estate market. If a housing boom erupts in Waterloo I wouldn't advise an investment purchasing housing spree in Toronto based on that fact.

What we are now entering into is a buyers market. There is more inventory out there to choose from which gives buyers the power to negotiate lower prices. The government is buying up mortgages, thereby increasing the availability for lenders to approve new mortgages. Mortgage rates have been dropping to fuel the housing market. Translation: Compared to the record year of 2007 people, many people may sell their home for less this year but will find that they can upgrade to a better home for less then they would have paid for last year, without the fear of entering multiple offers at every deal.

I came across two interesting articles that support my statements and the general state of our economy and real estate in Toronto. To view them follow the links provided below.

Gian-Piero

CIBC Weekly Market Insight & Canadian Economy Report