Friday, April 4, 2008

Toronto housing goes over the edge

I've just been following this because I live here. Also, I looked at all the houses being built, and all the condo-cranes, and I thought that this couldn't last. To top it off, some bank economist says that Ontario is going into recession, but housing will remain strong. Yeah? Tell me how housing will stay hot in a recession!

Now gas is going up to $1.50 a litre for cottage season. That's going to affect the hot cottage market for sure. I went through all this in the 80's, and here we are again!


Monado said...

The one thing that might save the housing market in Toronto is that people are still moving to T.O. looking for work.

Harold Asmis said...

Maybe, but transient workers aren't big buyers, they're renters. In fact, good rental availability allows job flexibility.

Anonymous said...

I am working as a Toronto real estate agent for 25 years and I always following also all the national economy statistics. You are right that recession and boom on real estate market doesn’t fit together but not necessarily. There is always some latency you should consider. You can also predict according to some statistics. For example National economy of Germany is following a new car market with one year latency. This indicator was always right for last 20 years. Of course it is never so simple.

Harold Asmis said...

This is the way the market cracked the last time, and it was a bit more of a surprise, since we didn't have a big US black hole.

If it is just the snow, then I'm wrong. Right now I'm seeing an awful lot of 'for sale' signs up.

The condo market is next, but it takes a while, since most condos build on a deposit.