"?" Yes, it's apparent that the market is not moving at a pace we would all like to see, but let's not cloud judgement yet on the future of Toronto Real Estate.
While the Toronto Real Estate Board announced a startling 22% drop in sales in March, some economists say that Ontario is on the brink of a recession, which will be short lived thanks to Ontario’s healthy real estate market.
So what’s really going on? Is the market ‘cooling down’, heading for a US style collapse, or is our real estate market healthy?
Apparently, this drop involves sales volume and not average pricing. It could be from supply and demand, a speculative bubble burst, home owners defaulting on their mortgages, new mortgage products like extended amortization or what people see in the market. Boom and bust markets play a key role in the consumers purchasing trends.
Whatever the cause, it doesn’t seem that this decline will have a major impact on Toronto’s real estate market since there has not been a major decrease in housing prices between 1992 and 1998. Most homes only saw a slight change, nothing greater than $10,000.
It looks as if this drop may lead to a more balanced market in the near future.
Oh! I never knew about the status of Toronto before. Anyway, thanks for the update. I enjoyed reading it.
-joicee-
Posted by: real estate philippines | July 09, 2009 at 10:04 PM