I’ve got to tell you, it’s a great time to buy real estate in Toronto! 6,015 single family units sold which is great considering that weather that we experienced in February, not exactly the "ideal showing conditions". The real impact of the weather was felt in the fact that fewer people listed their homes in February than last year. This lower inventory created a situation where prices went up(4% from last year), with homes selling faster (30 days ) and selling closer to the asking price(99% of asking price).
So why is now a good time to buy? While its true listing inventory levels are down, the number of buyers is down as well so your chances of getting that property are better. While this snow keeps up, the market will stay "cool" but don’t forget, spring starts March 21, just around the corner. When the weather changes, buyers will be out in droves and the competition for houses will be heavy.
What about the States, the R word?
There is a concern that the sub prime mortgage issues may be the blow that tips the U.S. economy into recession (and us). However as I said before, our economy is less influenced today by the U S than ever before. Our raw materials are in high demand and our oil reserves are the highest in the world. Along with aggressive interest rate cuts, the future looks rosy for Canadians. If there is a recession in the States, most economists feel it will not be a severe recession since, even before a recession is confirmed, the Federal Reserve, Congress and White House are collectively putting together stimuli to resuscitate their economy. That along with the coming elections will make a recession a minor one.
As you can see I am bullish on Toronto real estate! If you have a friend who is thinking of buying or selling, please let me know, I will take real good care of them.
Have a great month
Your Friend in Real Estate.