The Bank of Canada has decided on a wait and see approach rather than raising rates as they had hinted a few months ago. This decision was based on the latest inflation data and the strength of the dollar. Although the worries of the sub prime US market has been circulating, it's affect in Canada has so far been minimal. Instead housing prices in Canada are expected to continue increasing due to great demand and luxury homes are leading the way.
Luxury home sales across the country have been "unprecedented" over the first seven months of this year, according to one of country’s largest real estate firms, according to Garry Marr, CanWest. "The consumer demand for luxury property has been insatiable," says Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada. "Unabated demand throughout the year has created tight market conditions in a number of blue chip neighbourhoods. Limited availability of product has, in turn, placed mounting pressure on housing sales."
In Toronto, August was another record breaking month vs the same time period in 2006. The 8,059 sales reported last month exceeded the previous bestperformance for August, set in 2005, by seven per cent. "With five consecutive record-breaking months, spring and summer activity was unprecedented and given the strong economic fundamentals that remain inplace, we have tremendous confidence in the autumn housing market," said Mr.Bentley.
Despite all this activity, the message to all home buyers is this: Real Estate is one of the least risk investments that people will make because you also get the benefit of being able to live in it, care for it and control the overall appeal of it when it's time to sell. But only buy the home if you think you will like living in it and the area, and you won't have any regret.
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