As the U.S. housing market continues to decline and the related, U.S. subprime lending scenario continues to unravel, an increasing number of my clients and customers have been asking me if we can expect to see the same thing happen here; convinced that since we're neighbours, it's inevitable. And the recent drops in the stock market have only served to further the doom and gloom aspects (and media hype).
Do I believe it? Not really. Why?
Well, this article in today's Toronto Star can explain it much better than I can and I pretty much agree with everything he says.
In short, Canadian subprime lending did not occur on anywhere near a level (proportionally speaking) that it did south of the border. In addition, the housing market here never exploded the way it did down there. Sure it's been a very strong market here but nowhere near what happened in the U.S.
From the signs I've been seeing around the GTA and within my own business, I think the Fall real estate market is going to show a continuing strength and balanced supply and demand.
