Sep. 4, 2008

Toronto market in July

Canada and another western countries are facing possible economic crisis. GDP growth is often somewhere near to zero, inflation and unemployment is rising, gas prices...
One of the most endangered markets is the real estate market. It's not only the collapse in United States - it's also United Kingdom, Spain, Ireland, parts of India...
And what about Canada? You can read complex article about Canadian real estate market future on our Toronto real estate. What was the reality in July?
According to the Market Watch, the situation in Toronto is calm. There has been significant sales drop of 12%, compared to the year 2007, but sales were still 10% up the 2006 numbers. Price level has grown 1% and average number of days on market is around 30.
These numbers are a good proof of market strength. despite the sales drop prices remain stabile, so it means people are not panicking and flooding market with houses. And that's the most important thing, because psychology is now the key factor. There are no real substantial problems, like mortgage crisis in the USA. Our subprime mortgage level is much lower and the interest rate has been slightly calmer during last 7 years, compared to FED rates.
So if you own some property, you can remain in good mood!