I overheard the following conversation between two agents at my office a few days ago: “Did you hear about the buyer in the States who is suing her agent because she claims she paid too much for her house?” To which the other colleague replied: “If this ever reaches Toronto, half the real estate agents will be in court!”
It was only a matter of time before something like this would happen. Fortunately for all concerned, home prices in Toronto are holding their own, so we are not likely to see a train wreck here like we are seeing with our neighbours to the south.
As our leaders keep telling us – Canada’s economy is based on more solid fundamentals than that of the U.S. because our banks and other financial institutions didn’t engage in the “wild west” lending that crippled the American housing market.
And while it’s true that the 2008 Toronto real estate stats have been showing an overall decrease in the number of homes sold, there have only been minor price declines across most of the Greater Toronto Area (GTA) compared to last year.
And, to my surprise (and to that of those who follow the Toronto housing market on a daily basis), there are still a few exceptions taking place in some of Toronto’s prime neighbourhoods.
Believe it or not – in Lawrence Park and Leaside, the average sale price has actually climbed this year. It’s almost as if home buyers in these neighbourhoods are saying: “I know you think things don’t look good, but we know a good thing when we see it!”
Let’s remember that in the last ten years, the average sale price in Toronto has gone up an unprecedented 78 per cent. And in some neighborhoods such as Leaside, an average detached home that sold for $420,000 dollars in 2002, fetched an eye-popping $850,000 in 2008. That is a 100 percent increase!
When your home goes up 100 per cent in six years, a 5-to-10 per cent drop is not really a major concern.
So while agents south of the border are dealing with law-suits, GTA buyers are busy designing in-law suites for their new homes!
Unsure as to what to do in this market? Simply send me an email, or call me Rosalin Smith-Carr, at my direct line (416) 482-8330 ext. 3519
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