Saturday, November 3, 2012

Buyers are becoming militant about pricing

Buyers have heard from economists that a 20% decline is coming and they would like to take it now, thank you. Toronto home buyers want back in the drivers seat
In another case, a three-bedroom semi was listed at $569,000, then reduced to $539,000 and sold for $534,000. “My client is motivated. It’s done,” says Mr. Babiak, who points out that other semis in the same area and price range are still sitting there.
He points to Peter Hall, the chief economist at Export Development Canada, who is expecting more robust growth in the U.S. economy than most of his peers. If he’s right, says Mr. Babiak, that should bode well for Canada’s housing market and the correction that has been taking place since the spring could indeed turn into a rebound by next spring.
Not sure I follow this. Demand for bonds seems to be the main thing driving the Canadian housing market.

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