Home sales in the Brampton Area continue to drop. Buyers continued to sit on the sidelines while waiting for signs of stability. Bramptonian are delaying home buying on the hope that prices will fall more. People have a tendency to get carried away when things are going well and panic when they threaten to turn bad.
Provincial measures aimed at cooling one of the hottest housing markets in North America may be working. Sales are off and prices are down.
That is good for people, especially the new-comers, who want to buy but despair of ever finding a place. Some will decide they can afford one now. Others will decide that renting is a perfectly acceptable alternative. Every hit on landlords and fall in prices is greeted cheerfully by young adults, who have been priced out of the market.
The Toronto Real Estate Board’s president said the decline in activity has less to do with foreign buyers and more to do with potential homebuyers waiting to see how the market plays out. TREB said detached houses have led the region’s housing downturn, especially in the suburban 905 area surrounding the City of Toronto.
Detached house prices were up just 2.4 per cent in the 905 region in July compared to a year ago, but are still up 8.5 per cent in the City of Toronto, TREB said. The number of detached houses sold in July dropped 49 per cent in the 905 region and 41.7 per cent in the City of Toronto.
Many Canadian still believe that buying a home is a good investment, but potential buyers are delaying their purchases in the hope that prices will come down more. Always bear in mind that house prices are largely a function of how much a bank is willing to lend against an asset.