Canada: A Sign Of Things To Come

Canadian real estate reporters have it easy these days.  All they need to do is Google the "we won’t bust here" stories from the U.S., then insert their favorite northern city.

A few weeks ago we noted that the Vancouver Sun was recycling spin from south of the border.  Today it is coming out of Toronto:

The Canadian Real Estate Association announced this week the first drop in housing prices nationally in almost a decade, but characterized it as a one month blip that is not likely a sign of things to come.

That news was followed by the Toronto Real Estate Board’s (TREB) latest figures, which showed that the average price of a home in the GTA during the first half of July was $379,072, which is a 1% increase from the $374,254 recorded in the first two weeks of July 2007 and a 9% increase from $346,267 recorded during the same period in July 2006. The board has emphasized comparisons to 2006 in order to “present a more accurate perspective” of this year’s resale housing market, since 2007 was an overheated year.  [Doesn't  David Lereah  hold the copyright for that phrase?]

I would take this as a sign of things to come.

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2 Comments for this entry

  1. John M. says:
    July 19, 2008 at 7:03 AM

    Well, it would be a shame if Doom left out us Maritimers ;)

    “Saint John hits real estate hot zone: Growth is unprecedented, says longtime developer in city”, by Mark Taylor, Halifax Chronicle-Herald, July 19, 2008.

    The real estate market in Saint John is enjoying unprecedented health, says a veteran developer.

    “For the first time in the history of the city, we have already seen significant growth and we’re going to see substantial growth happening over the next 15 years,” John Rocca said Friday. “This is because we have finally hit the right zone and we are in the right sector from an economic point of view.”

    And you know, they may have a point. This era is likely the city’s most economically exciting since former mayor Elsie Wayne hosted the World Chess Championships. Heh, it has the highest and most dangerous tides of any good sized city on earth, but it has the decisive advantage that it is hundreds of kilometers down-wind (most days!) from places that desperately don’t want development projects like the following.

    With major energy projects underway, such as the $1.4-billion refurbishment of the Point Lepreau nuclear facility and construction of the $750-million Canaport LNG terminal, Saint John is expecting billions in investment over the next decade.

    “Crash,” says Igor. I’d like to know in what sense.

  2. NVmike says:
    July 20, 2008 at 8:35 AM

    It’s just a one-month blip. It’s not a trend. Toronto is *different*! It’s still a great time to buy! Build wealth with leverage and debt! Buy now, before prices shoot up again!

    sniff. sniff. Sure smells like denial to me.

    Let’s check back with Toronto in 12 mos, shall we?

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