As a Realtor I am constantly reading about the Housing Market and its influences.  On this page I occasionally post housing news articles that I found unbiased and interesting.  My own comments are in blue...  Deepti

My outlook for Fall/Winter 2009: 

 
The housing market in Toronto was really strong this Fall.  Many people that had been waiting to see signs that the recession was over, are now seeing those signs.  The Stock market has grown 50% since March.  There has been a boost in consumer confidence and therefore it has lead to the recent increase in market activity. 

If you have been waiting for a market turnaround, now is the time to jump back in.  Mortgage rates are still very low, and because a mortgage is the biggest portion of the cost of housing, this is right time to buy and sell.  The demand is there.  In fact, pent-up demand has lead to many high demand properties selling within days of listing. 

Don't forget the HST goes into effect on July 1st 2010.  Although it won't affect resale sale prices, or even new construction, it will affect the cost of all services associated with a real estate transaction, for example Legal fees, Inspection fees, Real Estate Commissions... etc.  TREB estimates the added cost to be $1500 per transaction.    

Is the recession over?  The signs are there that the end is in sight.  However, not all indicators have recovered, particularly Jobs and Employment.  I believe the economy is adjusting and we won't go back to pre 2008, but a new reality will emerge.  There will be a shift in the economy away from manufacturing and towards the service sectors. 

This is a great market for Investors.  The housing market is a stable alternative for building long term growth.  Whether you are thinking about your children's post secondary education,  your own retirement or just want a long term stable alternative to the stock market.  it's time to think of Real Estate as an investment. 

From TREB Marketwatch  
(for a complete copy of the report email me your request dneto@trebnet.com)
 

TORONTO, January 6, 2010 -- Greater Toronto REALTORS® reported 87,308 MLS® transactions in 2009 – a 17 per cent increase over 2008. This result included 5,541 sales in
December. The 2009 result was in line with the healthy levels of sales experienced between 2004 and 2006, but lower than the record of 93,193 set in 2007. 

“After a slow start to the year, existing home sales rebounded during the second half of 2009,” said TREB President Tom Lebour. “As consumer confidence improved, many households moved to take advantage of affordable home ownership opportunities in the GTA. The strong residential real estate sector was a key contributor to overall economic recovery in Canada.” The average home price in 2009 climbed four per cent to $395,460. The average price for December transactions was $411,931. “Market conditions became very tight in the latter half of 2009. Sales climbed strongly relative to the number of homes listed for sale, resulting in robust price growth that more than offset average price declines in the winter,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “A greater supply of listings in 2010 will see home prices grow at a sustainable pace.”