Toronto’s real estate sector still standing strong
Recent reports have cited that the United States should start recovering from the current economic crisis since its impact has been less than what was expected. However, this is not to say the international community is already out of the woods, so to speak. While the duration of the slowdown was not as long as expected, what the economic crisis has done to what was once seen as an infallible country is, according to economists, deeper than expected. Various countries with sectors dependent on the United States are still cautious as the damage done by the slowdown can still be felt. Countries like China and India are some of the countries that were deeply affected by the slowdown.
However, according to the Bank of Canada, Toronto—and, in general, Canada—is holding up to the effects of the slowdown. This is especially true in its real estate sector. Real estate experts attribute this to what they say could holdovers from what was previously United States’ market. Because of the unstable real estate of America, Asians and Europeans—and even the Americans themselves—choose toronto for the location of their investments and their properties. Toronto’s real estate is currently home to various international investments in condominiums, housing projects, and luxury hotel. While 2007 was seen as a better year for real estate, the sales from the first few months of 2008 were better than expected. The housing sector of America has clearly cast its shadow over Toronto. For example, existing home sales was down 11 percent. Relatively speaking, however, this is a good start, as other prime locations around the world suffered much bigger decline from 20 to 40 percent. This is proof that while toronto has long been seen as North America’s backwater in terms of real estate, it is holding up against the odds.
Still, although Toronto’s real estate status is better than America and other developed countries, real estate firms and agents are preparing for the effects of the U.S. economic slowdown. An expected decline in real estate sales has been continuously reported for years, but the predicted magnitude of the decline is yet to happen. There is still interest in Toronto’s real estate properties, for sure, but real estate now has to intensify their marketing strategies in other to translate the interest into a sale. Agents also say that there are smart enough parties to see the trend and believe that the turn will definitely turn. The opportunity is there, say real estate agents. In fact, active listings this year were eight percent higher than last year. And while condominium prices were up this year compared to last year’s prices, prices in June 2008 are lower compared to prices in January 2008. This means a real property, as long as it is priced right, will sell, while an ill-priced property would not.
The real estate sector of Toronto is expected to get more stable as the U.S. economy stabilizes next year. This could only mean Toronto’s real estate status will and could only get better.