For all the pundits that have been predicting "bursting bubble" and experts (not practicing in Real Estate), February statistics have once again shown no signs of cooling in the Toronto/GTA market.

Here are excerpts from the TREB report:

TREB reported 6,772 sales in February, an increase over February 2006 (6,756 sales) and the second best total for this month ever recorded, TREB President Dorothy Mason announced today. "While the weather last month may have been cold, Toronto's resale housing market remained hot," noted Ms. Mason. "And while it is too early to make predictions, it is clear from the start of 2007 that the spring season is likely to produce sales numbers at least comparable to those of the past several years, which have been record or near-record performances."

Meanwhile, average prices climbed four per cent over the previous month to $368,687 as sales activity accelerated. They were also up four per cent from the February 2006 figure of $353,928.
The average time-on-market was a torrid 35 days.

Breaking down the total, 2,522 sales were reported in TREB’s 28 West districts and averaged $342,060; 1,224 sales were reported in the 14 Central districts and averaged $504,381; 1,395 sales were reported in the 23 North districts and averaged $389,306; and 1,631 sales were reported in TREB’s 21 East districts and averaged $290,392.
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If anyone is interested in knowing information abot their area or more specific data, please PM me or call me.

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK

The Bubble will never burst in GTA and the prices will always be upward bound but the issue is how high ?. But on the side note there are 3 issues which are paramount in importance in the near term and these are:

1.90% of exports to Canada is to USA.

2.Alan Greenspan warns about a 33% chance of USA recession by end of this year.

3.With a high probability of USA attacking Iran after Dick Cheney's visit to Pakistan how will the USA economy on a downturn will affect Canada ?.

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http://www.thestar.com/Business/article/189520

Housing market to soften: Report

Mar 08, 2007 04:30 AM
Tony Wong
business reporter

The Canadian housing market will soften this year, but will not follow the path of the United States, where average prices have declined in some states, says a report by the Bank of Nova Scotia.

Housing affordability in Canada has been eroded by a \"steady run up in prices since the start of the decade and pent up demand largely absorbed,\" said Scotiabank economist Adrienne Warren in a report released yesterday. \"At the same time a growing inventory of new homes, rising labour and material costs and better balanced resale markets have trimmed builders' profit margins.\"

The bank is anticipating a drop of 10 per cent in home sales and housing starts in Canada this year.

Still, the situation north of the border is far healthier than in the United States, said Warren.

U.S. housing starts have fallen by 25 per cent over the past year, while resale home sales have fallen by 10 per cent, according to the bank.

Average home prices since mid-2006 have flattened nationally, while some states, particularly in the west and in the south, are posting significant declines.

\"Canada is unlikely to follow a similar path,\" says Warren.

\"Relative to the United States, speculative investing has been less active, overbuilding less prevalent and high risk lending less widespread.\"

A strong job market and low mortgage rates are helping to give the Canadian market some forward momentum, she said.

Significant regional disparities will continue in 2007, with western provinces leading the charge in average house price increases.

\"The West is now home to some of Canada's most expensive real estate,\" said the economist.

Home price appreciation west of Ontario has averaged 18 per cent year over year, almost four times the pace of provinces to the east.

The bank has identified Saskatoon as having the tightest housing conditions in Canada, followed by Winnipeg and Sudbury.

The Toronto market is largely balanced, meaning more moderate price increases this year, says the bank.

In the long run, Toronto prices are set to go higher, says an unrelated report by housing research firm Altus Clayton also released yesterday.

The firm is forecasting much higher housing prices for the Toronto area because of provincial greenbelt legislation that restricts development.

Expect significant price appreciation for low-density housing such as single detached homes and a smaller uplift in price appreciation for the high-rise market, said the report.

So far the effects have not been felt since existing Greenfield land has not been depleted, said Altus Clayton.

The Toronto market is already off to a healthy start this year.

Building permits for January released on Tuesday showed an increase of 21 per cent over the prior month, representing $1.2 billion worth of future residential and commercial activity. The Toronto Real Estate Board also reported this week that February sales were the second best for that month on record.

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Speech by Thomas Friedman of The New York Times....

"When we were young kids growing up in America, we were told to eat our
vegetables at dinner and not leave them. Mothers said, 'think of the
starving children in India and finish the dinner.' And now I tell my
children: 'Finish your maths homework. Think of the children in India
who would make you starve, if you don't.'"

Nowhere in USA or even in the whole world for that matter, such a huge # of immigrants land in a single urban area, like GTA in canada. Homes worth $200 k cost $400 k today because of this immigration factor. They pay mortgage for the rest of their life.
No wonder Canada is Fools Paradise.

- As long as the appreciation is below 7%, it is not really an appreciation. Calculate the inflation (not the number published in paper of course, we know it is far intense) and $ thrown in towards maintenance.

- The hyped up prices in Mississauga really surprises me. I second the statement that the influx of immigrants from different sources will continue to be high.

1. Desi descendants from Middle East who come with a sizable $$.

2. Straight from India and neighbors (No matter how far India develops, it will take years really to accept living there especially with young kids. Most of the people want to invest in India but not live there that doesn't exclude me).

3. Middle Eastern.

4. Eastern European.

5. Above all, the people who want to use this place as a stepping stone to end up in Southern neighbor. I think this category will reach the highest because it gets good amount of people from all the above category. And investment in housing is seen safe to take it out after 5 years and pack the bag to move south.

In my feelings, it is not really the Job Market or this and that which really holds this GTA real estate market but the influx of immigrants who are able afford a home.

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

There is no bubble anywhere in Canada. Canadian lenders play safe when giving home loan. There is no easy money like USA where alternate lenders where throwing money away. Now the US Sub Primer lenders (alternate lenders) are going bust in droves.

Only watch out for condo market in Toronto. There is glut in the market. Builders are now giving 10K discounts