Multiple offers. Frenzied buyers. Higher prices. In the middle of a recession Toronto real estate has gone from a buyer’s market to what looks like a seller’s market. But can it last?
Some analysts say the spring fling will be exactly that — a quick bump up in numbers with a much more sombre fall to come.
“You had pent-up demand from the winter where nobody bought anything, and then these really low interest rates that brought everyone back into the market,” said Shaun Hildebrand, senior market analyst for Canada Housing and Mortgage Corp.
Analysts don’t expect the rebound to last. At least not until job numbers pick up substantially.
Since October the unemployment rate has leapt to 8.4 per cent from 6.3 per cent.
One reason for the uptick in real estate is that remedies to fight the recession, such as low interest rates, have helped to turn around the market.
Another reason is active listings are down 30 per cent from last year. That causes prices to rise.
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