In a report released by Scotia Economics on Tuesday, Canada was noted as having the longest sustained property increase in the Western world. With this said there are strong indicators showing that this growth is slowing, which is actually a good thing. The slowing of this growth means that property values will be able to stabilize and current home owners will not see the equity in their home disappear overnight.
5 Year comparison of housing prices in Toronto based on statistics provide by TREB MLS data*. All Prices expressed in 1000
*TREB MLS DATA
If the bubble does burst it should only be a short fall. Leading Canadian economists have stated that the outside risk is a 10% correction over the next 2 years if the worst economic conditions prevail. However, the more realistic scenario is a flat to low single percentage gain. Of the 10 Western countries studied Canada showed a real home price (this takes into account inflation) increase of 4.8% in the last year. In the next year a few factors may dampen this growth such as increased economic instability in Europe and the US and a slowing pace of hiring in the private sector. This might lead some to feel that they should wait before getting into the housing market even though it may not be the best option, read more about this in our blog Buy now or wait for the crash.
To put the bubble bursting in to perspective, Ireland which had to to be bailed out by the International Monetary Fund* has seen a real home price decrease of 14%. This represents the absolute worst case scenario which Canadians really shouldn’t worry about. The are a number of reasons why the Canadian economy is not going to follow in Ireland’s foot steps. The first being the indebtedness of the government, relative to many of our Western counterparts (especially Ireland at its crash) we carry a very light debt load**. Secondly, is our strong natural resource based economy that is coupled with a world class financial industry that is hugely attractive to foreign investment. These along with many other factors will help the Canadian economy and housing values sailing fairly smoothly through these unstable economic times.
By Julian Irwin – Managing Partner Spring Realty
**Canada’s budgetary Deficit stands at 36.2 Billion down from 40.5 billion – http://www.budget.gc.ca/2011/glance-apercu/brief-bref-eng.html
We’ve all been there, you’re standing waiting for the TTC bus it’s –25 you can’t feel your toes or fingers. Each passing taxi looks like salvation but you resist the urge to flag it down because you’re sure the next bus is just around the corner. Of course it’s not and you continue to wait another 10 minutes, at which point your toes have turned a deep shade of blue and another taxi starts approaching. This time your not so certain that the bus is around the corner, you try to resist but the lour of the warm taxi is too much and you flag it down. We’ll we all know what happens next, no sooner do you sit down on the cracked plastic seat of an aged Crown Vic. then do you hear that high pitched whir of an approaching bus!
Well my friends no more! With little to no fan fair and even less media coverage the TTC released it’s automated vehicle scheduling system a number of months ago, it’s called Next Vehicle Arrival System (NVAS). This fantastic little piece of technology allows the user to see exactly when the next bus is coming. Developed by the people at NextBus the system gives real time updates of all vehicles on the system. So no more guessing or trying to decipher those cryptic time tables posted by the stops (which at best are guesstimations based on a city with no cars). Simply pull out your chosen smart phone and go to www.nextBus.com from there you will be able to install a direct link that you uses the internal GPS in your phone to tell you when the next bus closest to you will arrive. Most importantly these times are not based on a set schedule but rather on live GPS information that is relayed from each bus. It is a real time, life and toe saver to be sure, to learn more and start using the NextBus system just follow the links below.
To read more about NVAS and the TTC go to:
To install the NextBus on your smart phone:
To see when the next bus is coming from the comfort of your computer:
Frustrated with the big banks. They’ve decided to unreasonably restrict lending to #MapleLeafSquare and #55Stewart due to Hotel Component.
Lanterra Developments is under siege in the wake of falling glass at their Murano Condos near Bay and College. According to the Toronto Star, last night was the fifth time glass has fallen from the building at 37 Grosvenor Street this year. The highest one was from the 35th floor and thankfully residents and passerbys have remained unscathed to date.
But that hasn’t stopped real estate agents and residents from taking to Twitter to tweet their two cents about the ordeal. As the screengrabs below illustrate, there’s bubbling disillusionment about the quality of work being done at Lanterra backed projects. They’ve yet to formally comment on the glass that fell today, but I suppose this suffices as a buyer beware warning for anyone interested in any of their current and upcoming projects.