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Bill's Market Update Dear
Friends and Clients: With a combination of the mood of the US sub-prime issue and economic slowdown in Canada, we are sure to see a significant drop in the volume of sales for the year. Prices also should slowly but surely trend downward except for a few unique market areas due to localized factors. The market has had a fairly healthy and steady increase in the last 11 years and it is time for the market to have a minor correction to stabilize and reaffirm prices. Once the speculative elements are weeded out and the economy starts enjoying healthier growth again the market will go again. I predict this likely short-lived slowdown (in the range of 5% to 15% drop) should last for about 1 to 2 years. Toronto in particular with its huge and steady influx of new immigrants should fair relatively better. The overall long term outlook for real estate ownership in Toronto remains very strong and positive. Well! what does it all mean to the home sellers and buyers? 2008 will likely go through a market transition whereby sellers will have to be more realistic in their pricing. They should make sure when offering their homes for sale that they should be priced “IN THE MARKET” instead of merely putting them “ON THE MARKET”; buyers will benefit from the increase in inventory and renewed prices. Since most people do buy and sell within the same market period/condition the impact should be minimal. All in all it is just a better and more balanced market for everyone. |
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