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Toronto housing market in '08
Toronto's housing market will remain strong in the new year, an economist with TD Bank predicts. However, the real estate boom will lose some of its intensity as home price appreciation will slow down significantly, said economist Craig Alexander.
"There will be a few factors that will determine how fast homes sell on the market." For example, Toronto Mayor David Miller's new land transfer tax will slow down the sales trend, he said. However, if the city continues to have a low unemployment rate, then real estate sales will remain steady.
"Jobs will be available, income will rise, and that's your fundamental support for your housing market," he said. Alexander also predicted interest rates would remain low.
Nonetheless, he said an unprecedented supply of housing coming into the market -- especially the condo market -- will slow the rapid pace housing prices have increased over the last few years. "It still will remain a seller's market but not as tight as it has been, so home prices continue to rise, but rather than rise at double digit pace, something in the mid-single digit range," he said.
December 31, 2007 in Toronto Real Estate Update | Permalink
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Comments
The real estate value of extreme poor construction (cheap building materials) cannot justify the current market value. Mostly they are built out of 2-3 m3 of timber, which, over the time, are damaged by cellar and mine funghi, wide rot, and various beetles. Therefore the value should be declining, not justifying the current real estate buying/selling hystery. Having lived in several European countries, where building construction is sustainable, very well regulated, and still affordable, the toronto real estate experience is, at least, shocking! Except for some over one million villas, buying a house in this city is for desperate people.
Posted by: Temporary Toronto Inhabitant | Jan 5, 2008 12:32:20 PM
I think the new land transfer tax will surely slow down the sales trend in Toronto, but I also believe that this phenomenon will not last for long. Following the initial fuzz, the theme of the new LTT seem to have calmed down. I can also agree with Mr. Alexander's forecast that the housing market will remain strong this year. We will surely feel the consequences of the real estate boom we experienced in October and November.
Posted by: Toronto real estate agent | Jan 2, 2008 11:52:28 AM
