If you’re receiving mixed messages regarding the economy lately well join the club. The Canadian economy is performing brilliantly right now, the best in the G8 or is it the G20? The first quarter GDP came in with an amazing and unforeseen 6.1 per cent growth. Although inflation isn’t a problem yet you can bet that interest rates will rise if our economy maintains this torrid pace. On the other hand if you believe the news, the crisis involving Greece and other members of the European Union threatens to plunge us into the second half of a double-dip world recession.  

It’s true that Canada did weather the storm better than just about any other country during the recent economic crisis and our current economy is the leader of the pack (vroom, vroom). But the thing that scares me is that by way of various stimulus packages we spent our way out of trouble thus increasing our debt load. That’s like renovating your home because you can’t pay the mortgage. 

On the local scene the average sale price of MLS listings has never been higher but have prices really increased 14% since last May or is it just that more expensive homes are selling right now? I expect the latter. The remainder of May’s numbers indicate a downward trend in our local real estate market. In fact the market peaked in March this year and has been steadily slowing ever since. The impending implementation of the dreaded HST likely has a lot to do with the early spring market and subsequent slide and one has to question the wisdom of implementing such a harsh tax when the economic outlook is still a little shaky (Dalton?). 

So sales are down, inventory is up and homes are selling slower and farther away from asking price. Is the market getting ready to tank again or will it bounce back in the fall? I guess it depends on who you’re talking to. I expect the slow-down to continue through the dog days of summer and then if things have stabilized in Europe by then I think we’ll see the market rally a little as the leaves begin to turn colour. I don’t expect prices to go down over the long term but I don’t think they’ll go up much either. This stagnant market should remain until the end of 2010 and quite likely well into 2011. The moral of this storey, if you have to sell, don’t drag your feet! Your strategy should be to sell before the end of June. If you’re thinking of buying, take your time and wait for the right home at the right price. If you want to buy and sell, you have nothing to worry about. No matter what the market is doing, things will pretty much even out for you.

Is your home awash with bright color decisions? Does your carpet mis-match the curtains. Are your teenage children's bedrooms still stenciled pink and blue? and have not been decorated since they were in diapers? Have you made bold color choices in the past but just can't seem to get it right? Then i want to talk to you!

A Toronto based production company is returning with the color makeover show, BLANK CANVAS. Restoring your homes color balance and bringing back the harmony to your family.
We're looking for parents in there late 30's to early 40's who have children aged 13 upwards. We need some really exciting and interesting personalities along to help us make a fantastic show if this is you get in touch now and email me pictures of you colorful decor. I want to see your flashing kitchens, funky family rooms and brightly colored bedrooms. With the help of our interior design experts we'll take your home back to basics and start from scratch, from perfectly white to the ultimate delight. If you think you home could do with this make over, email pictures of yourself, your family and every room in the house. indicating to me an idea of its size. I must stress that this time we are restricted to outside the GTA.

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The Ontario 2010 budget was highlighted by a large provincial deficit and little in the way of help for the provincial real estate industry. The 2010 budget forecasts a deficit of $21.3 billion for 2009-10 and $19.7 billion in 2010-11, growing the provincial debt to $232.2 billion by 2012-13. The Budget lays out a plan to eliminate the deficit by 2017-18 through spending restraint, salary freezes and improving efficiency in the delivery of services, especially healthcare.

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 Could Early Spring Mean Early Summer?

 Those of you who are regular readers of my market update may recall that back in February we were enjoying spring-like market conditions. It was the hottest February for real estate in recent memory and local Realtors who were more than ready for the end of the recession were delighted with the early arrival of the spring market. Buyers and sellers wanting to avoid the impending HST plus a general economic recovery stimulated our local market which lead to record sales and market conditions typical of April or May. 

After a very strong March where market conditions continued to improve, April’s numbers look a little lackluster. This makes me wonder if summer might arrive early this year as well. The real estate market typically slows down a little during the summer and usually bounces back after the kids are back in school in September. Considering the less than spectacular April, could that summer slow down be starting now? 

Although April’s stats look relatively strong by themselves they pale in comparison to March’s numbers. Total sales for April were down 8% from March. The average days on market for MLS listings increased by 3.5% and the number of homes for sale increased by 10%. Although April’s market wasn’t bad by any stretch, it clearly was slower than the previous month. Could this be a trend? You know what slower sales and increased inventory mean, lower prices. This is true whether you’re selling houses, cars or shoes. In addition, the number of homes that sold for full price or more was down 5.5% in April and the average sold % of list price was down ½ a percent as well.  

Now don’t get me wrong, the current market is still pretty strong. Homes are selling quickly and close to or over asking price but if summer does come early the market could slow down sooner than expected. By the end of May the proof will be in the pudding. If the market bounces back, we’ll be in good shape well into the summer. But if the down turn continues we could be looking at a serious summer slow-down. Stay tuned! We’ll have a better idea in another month.