Property sales in Canada continue to drop as the fallout from the global economic crisis hits another country that presumed it was immune from the major problems. Toronto, once one of the fastest growing markets in the country, has seen a 35% drop in sales over the past year, according to the Toronto Real Estate Board.
There is still optimism that Toronto, and Canada, will escape a more severe downturn such as the US has experienced. Toronto Real Estate Board president Maureen O’Neil says that “There’s no question that in Canada the economic fundamentals to support a healthy market remain in place. Consumer confidence is being unduly affected by media reports on the US economy.”
According to a number of analysts, though, the market is probably headed for a continued downturn. The stock market as well as the property market is down and both developers and agents are feeling the impact across the country. While Canada is still rich in other natural resources, the sudden drop in the price of oil has also hurt the country. The next few months will be interesting for both the Canadian economy as a whole and the housing market in particular.
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