Ups and Downs

Hello! It's been a while since my last post. Not too much has changed since my June posting. The latest report on the Toronto real estate market is very positive considering the European and US economic crisis. Luckily Canada, in general, has separated itself from these countries/unions with its own set of criteria for economic growth, spending and restrictions. Yes, there's been some downturn in the economy, but the real estate market continues to thrive. Low interest rates keep home buying affordable. The downside is that there hasn't been as many homes on the market in 2011 as in past years, creating some inflated pricing (homes which tend to sit without being sold) or the opposite, bidding wars on well-priced, structurally sound and well designed homes. This latest report from the President of the Toronto Real Estate Board reflects the current market conditions.
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'The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013. However, home ownership affordability in the City of Toronto could be further improved with the removal of the City’s land transfer tax. This tax currently represents a substantial upfront cost for home buyers. 

With market conditions remaining tight in the GTA, the average selling price continued to grow strongly in August – up by more than 10 per cent year-over-year to $451,663.
We remain on pace for the second best year on record for sales. Approximately 90,000 transactions are expected by the end of December," said TREB's Senior Manager of Market Analysis Jason Mercer.
Major home ownership costs, including the average monthly mortgage payment, remain affordable despite the strong price growth experienced so far this year.'

This report is positive and hopeful for the remainder of 2011. The downside is, with Toronto's recent woes re: service cuts and deficits, it's unlikely we will see the Land Transfer Tax abolished.