IS THE REAL ESTATE MARKET GOING TO “TANK”?

IS THE REAL ESTATE MARKET GOING TO “TANK”? .... NOT ANY TIME SOON!!!!!!!




I want to keep you updated with the Greater Toronto Area Real Estate Market. After reviewing the latest sales figures from the Toronto Real Estate Board, in May 2011 there were 10,046 sales for the month, which is exactly what I had predicted 2 weeks ago.



Here’s where it gets really interesting. Currently there are only 18,481 homes for sale on the Toronto Real Estate Board, compared to 25,414 at the end of May 2010. That’s about a 27% drop! Insane! With the current inventory and how fast we are selling them, we have only a 1 ½ month supply of homes. The buyers out there don’t have very many choices. In Milton the supply is even tighter.



Is this market going to last forever? Of course not! Is the real estate market going to “tank”? Not THIS year.... that’s for sure!! The question remains, how long can the market keep going like this? There will be very little change unless one of the following things takes place.



1. Mortgage rates will need to go UP significantly! Nobody is predicting this any time soon.

2. Inventory levels will need to go UP significantly. They keep dropping and there’s a surprisingly low number of new listings coming on the market. We keep waiting for more listings, but it’s not happening.

3. Our national or local economy will need to DROP significantly. The economy in Canada and particularly in the GTA seems to be getting better. Love him or hate him, Prime Minister Harper has been able to keep the wheels on the road. So far we seem to be “bullet proof” compared to what is going on in other parts of the world. Thank God, we’re Canadian!


Lisa Portolese, Sales Representative

Royal LePage Kingsbury Realty, Brokerage

30 Eglinton Avenue West, Suite 200

Mississauga, Ontario, Canada

Bus (905) 568-2121

Res (905) 238-3434

Cel (416) 953-9714

LisaMovesYouNow@Rogers.com

www.lisamovesyounow.com



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