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.