Real Estate Bubble - Is It Time?
By Inspector
The real estate market in the United States has turned down, that’s for sure. Sales of existing houses dropped 4.1 percent in July to the lowest level in 2 years. The number of houses on the market hit an all-time high of 3.86 million.

Prices haven’t fallen nationwide yet, but they’ve flattened out. The median sale price for a house in July was up just 0.9 percent from a year ago. Now that the market has started to fall, homeowners and agents want to know: How far and how hard?

A lot of money is riding on the answer. In Canada things are in a holding pattern, most people I have talked to are waiting to see what develops in the US. Our economy is tied to the US and usually reflects their ups and downs.

Consumer confidence according to CREA is trending downward. Sentiment about making major purchases rose in Ontario, but remains below where it stood one year ago. The decline in sentiment about making major purchases likely reflects rising home prices and seven increases in the trend setting Bank rate since September 2005. Sentiment about making big-ticket purchases in Quebec continued to trend lower, and at a steeper rate than in any other region.

According to CREA the Actual (unadjusted) sales activity declined by 3.7 per cent in July compared to the same month in 2005. Take a drive around Barrie, Ontario and it doesn’t take long

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