Vancouver Market: Time Mortgage

Time Sellers Dept: The good news is that the situation in Toronto had nothing to do with speculation which can lead to a bubble but was driven by economic fundamentals. Sales started to rise rapidly in the second half of 2009, boosted by low interest rates and the economic recovery that followed the financial crisis. Also fuelling sales was the anticipation of tighter mortgage rules. Since sellers were still cautious about putting homes on the market following the recession, home buyers had relatively few units to pick from, according to The Star. Sales plunged so did growth in prices. In the fourth quarter of 2010, annual price growth was closer to 5 per cent. That got some analysts nervous that the housing balloon was about to burst. But in truth, the market reacted exactly as the economic fundamentals would dictate and toronto s housing market has not received anywhere near the attention that has been paid to the Vancouver market and its reputed housing bubble. But it is easy to forget that in the first half of 2010, the Toronto market was also perceived as a bubble ready to pop. At that time, sellers held sway and double-digit year-over-year price increases were recorded. With housing demand exceeding supply, it is not surprising that prices soared by about 19 per cent over the winter of 2010, to the delight of sellers, whose reaction was to put their homes on the market. By spring, the increased supply was beginning to trim price growth, although it remained in double digits for several more months. Around the same time, mortgage rules were tightened. Buyers, already spooked by big price hikes, retreated from the market. (www.immigrantscanada.com). As reported in the news.