March 2009 Real Estate Update

It seems there are lots of listings but well priced properties in short supply are still selling. The challenge for buyers is to act now with low interest rates. Sellers have to be realistic about their price as there have been adjustments after so many years of increasing prices. Most experts believe we will have stronger activity in the real estate market by late summer.

In the Toronto Real Estate Board March 5, 2009 press release we see these thoughts. “Typically the spring real estate market tends to experience more activity and with the Canadian economy experiencing a period of low mortgage rates and strong immigration, this trend could continue. According to Statistics Canada, Canada welcomed 247,202 permanent residents in 2008, 70,000 more than in 1998 and well within the government’s planned range of 240,000 to 265,000 new permanent residents for 2009.”

The Royal Bank of Canada (RBC) had their Annual Homeownership Survey come out in second week of January 2009. This results show “confidence” is coming back to the housing market. Roughly 2,026 Canadian consumers were surveyed and the results showed that 65% of the participants believed that we are in a buyers market. The Bank thinks confidence is being driven by younger generations and the renter population. Approximately 38% of renters felt they would buy a property within two years. In the under 35 year old group. 48% said they were planning on making a home or condo purchase. The Bank also believes that the lower prices combined with lower interest rates will have more people back in the housing market within the next two years.

Norah Oulahen