Housing market strong and steady in '08: economist
Toronto's housing market will remain strong in the new year, an economist with TD Bank predicts.
However, the real estate boom will lose some of its intensity as home price appreciation will slow down significantly, economist Craig Alexander told CTV Toronto.
Alexander said there will be a few factors that will determine how fast homes sell on the market.
For example, Toronto Mayor David Miller's new land transfer tax will slow down the sales trend, he said. However, if the city continues to have a low unemployment rate, then real estate sales will remain steady.
"Jobs will be available, income will rise, and that's your fundamental support for your housing market," he said.
Alexander also predicted interest rates would remain low.
Nonetheless, he said an unprecedented supply of housing coming into the market -- especially the condo market -- will slow the rapid pace housing prices have increased over the last few years.
"It still will remain a seller's market but not as tight as it has been, so home prices continue to rise, but rather than rise at double digit pace, something in the mid-single digit range," he said.
With a report from CTV Toronto's Austin Delaney