Ken at C21 Brown real estate serves Toronto GTA

   Overall, the GTA average price rose just over one per cent in July 2008 over July 2007 to $371,427 from $366,012, and a nine per cent increase from $342,034 recorded during July 2006.

   Once again, price movements differed depending on the part of the GTA involved.    Within City of Toronto boundaries, the increase was marginal (under one per cent) to $395,342 in July 2008 from $395,044 in July 2007 and up 10 per cent from the $360,409 recorded during July 2006.

   Within the City of Toronto, the 3,132 sales recorded in July 2008 is down 14 per cent from last July’s 3,640 figure but up 10 per cent from the 2,852 sales recorded in July 2006. Comparing July 2007 with July 2006, a period before the Land Transfer tax went into effect in Toronto, sales increased 28 per cent.

    In the 905 municipalities surrounding the City of Toronto, however, the average price climbed almost three per cent to $355,401 in July 2008 from the July 2007 figure of $345,967 and up eight per cent from $329,644 recorded during July 2006.

Negative headlines : positive prospects 

   We hear of   General Motor’s Oshawa truck plant closure. But as part of the union settlement more vehicles to be built at new Oshawa plant; and senior workers to get pay packages with car purchase  vouchers up to $35,000.

   Reports of the loss of   55,200 jobs last month according to Stats Canada , may be unsettling , but  48,000 of  these losses ,according to the same stats were part-time jobs centred in manufacturing ,business, building and other support services and educational services.  According to CIBC World Market econo-mist  Tal , “The number of full time employees in high paying  sectors is rising steadily  across the country despite a sharp drop in the overall number  of new jobs.

   In Ontario  employment quality has improved  by  4.7 per cent  since the beginning of the year. Especially when many  of the job losses were in the lower paying manufacturing jobs  in wood, clothing, and textile industries.

   With reports of  US job uncertainty  Federal Finance Minister Jim Flaherty  reassures us that  Canada’s labour market has out performed  the US  by creating 70,000 jobs  since the start of the year, while  the US has lost  over 460,000 .

   Reports of US housing  price collapse under subprime financing ,worry not only US consumers but may make Canadians uneasy as well fearing  a potential repetition  of  their experience in Canada .But as chief economist  at the Bank of Montreal  Dr. Sherry Cooper  observed that the American like house price inflation  is only part of the “Western Spike” reaching 38.7% in  Saskatoon  while the major markets in Canada averaged at 6.9 %.

   Also  American lenders offered  loans  to clients with no income nor assets,  but Canada moved to protect  and strengthen  the Canadian housing market from the American bubble by  having CHMC  no longer  accepting mortgage insurance  for 40 year amortizations  nor  with 100% loan to value  mortgages.

According to Don Lawby the President of Century21 Canada,he finds that in a survey of 167 neigbourhoods,only 21 had  prices decreases while the majority incresed in price in Canada. This is in contrast to the American experience with their housing market crash their credit crunch as well as the volatility of their stock market.

He expains this difference of the Canadian housing market  based on conservative lending practices  and regulations  with strong banks and Canadian pride of ownership and diligence in building equity in their homes.

These characteristics will sustain the Canadian housing market as Canada's economic growth rate is expected to slow this year.