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Toronto Real Estate Market is Booming Despite the Recession The real estate industry in Toronto, more particularly the resale housing market have significantly improved this spring. The Toronto Real Estate Board have reported 8,107 sales on the first week of May, which was less then the 47% free fall that was experienced in January. The significant development in the Toronto real estate sector could be significantly tied to improved affordability of houses which have enticed more buyers to purchase their own homes. Just for instance, average price of GTA home in April was $385,641 which was less than 3% on April 2008. According to Jason Mercer, Senior Manager of Market Analysis for the board, the average price of houses have fallen down due to the tightening that is currently being experienced in the resale market. Albeit, new listings for houses went down by 30%, hence implying that some homeowners did not see that this is a perfect time to list their homes for purchase. Despite of this, affordability of houses have become more evident compared to the last quarter. Increase in building permits (23.5%) was also seen in March which was the first sign of improvement after five consecutive monthly declines according to Canadian Development Front. In the Toronto market, building permits also surged by 61% in March hence bringing-in revenue of $917 million that was collected from government and commercial buildings. Despite these promising figures, Charmaine Buskas, Senior Economics Strategist at TD Securities said when viewed as a whole, it could be seen that there is a downward trend in overall building activity, therefore hanging on these current improvements should not be the norm. She said that there is more downside than upward risks to home sales and prices. In relation with this, Scoatiabank Economist Adrienne Warren said that since there is a sharp decline of numbers in the domestic labor markets, it is possible that a major resurgence in the demand of houses could be expected. Despite of these criticisms, it is noteworthy to say that the Canadian real estate business is still right on track and have not been experiencing the same difficulties as those of their counterparts in the United States. In fact, this could be the perfect time for Torontonians to purchase their new homes. |
| Date added: 2009-05-10 01:50:44 Hits: 36 |
