New Homes Sales drop - A Key Indicator for Recession - GTA
New Home Sales have dropped
New homes sales in the GTA dropped and have reached 2003 levels and appear they will drop further. New Home Sales are one of the Real Estate market Key Indicators of the trend in Real Estate.
October is experiencing the sales volumes we see in December of every year. December sales are always slow. It appears that in December 2008 new home sales will be even lower.
Notice the trend since last year: buyers are attracted to High Rise buildings.
MY COMMENT
I can only imagine what will happen when THOUSANDS of condos become available in 2010 and later.
It appears over 60% bought pre-construction for Investment purposes.
QUESTIONS
- How many people will be in the market to rent?
- If there are lots of units available, do you really think the prices will hold high? Or do you expect a serious drop in rental prices?