Toronto resale housing market in May, 2008

Canadian Real Estate Investing Discussion
rock
Posts: 20
Joined: Tue Jun 10, 2008 3:06 pm

Toronto resale housing market in May, 2008

Postby rock » Tue Jun 10, 2008 3:43 pm

The real estate sales figures for Toronto in May, 2008 are out and they don't look good. The resale activity in the GTA declined 16% in May year over year. However the average home price still went up 4%. The Toronto numbers actually are worse with 3% increase in the average price, while the 905 region had 5% increase. The Toronto resale numbers were also worse compared to 905 area. The number of sales in Toronto in May, 2008 declined 19% from May, 2007, while the 905 area fared better with "only" 13% decline.

What do you think? Is this the end of the Toronto real estate boom? Is this the beginning of a severe correction, which will take the average Toronto's house price down to levels many cannot even imagine today?

gonzo13
Posts: 23
Joined: Tue Jun 03, 2008 6:16 pm

Re: Toronto resale housing market in May, 2008

Postby gonzo13 » Tue Jun 10, 2008 4:06 pm

rock wrote:What do you think? Is this the end of the Toronto real estate boom? Is this the beginning of a severe correction, which will take the average Toronto's house price down to levels many cannot even imagine today?


It may be... who knows what will happen by the end of the year. Do you think that the decline in Toronto is due to the new taxes our "beloved" mayor invented last year or is due to the inflation and the end of the housing boom.

spencer
Posts: 37
Joined: Thu May 29, 2008 8:46 pm

Re: Toronto resale housing market in May, 2008

Postby spencer » Wed Jun 11, 2008 8:13 pm

I don't think that the new land transfer tax on Toronto real estate, has much to do with the sales decline. The Toronto real estate market has been over-inflated for years now, and now is payback time. I pity all the fools who bought houses here in the last 2-3 years. Most of them are still sitting on tidy paper profits, but it won't be long be fore they become paper losses and then real losses.


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