Canadian real estate markets remain normal, in comparison to the worsening situation in several of the United States major markets like California, and Florida.

With the American Economy stumbling its is sure to slow the growth in Canada but a strong economy here, should negate the Canadian housing market from falling.

Construction, sales and price gains are forecast to moderate in 2008 because of decreasing affordability for first time buyers and softening in our own domestic economic conditions that are tied in with U.S meltdown and housing slump.

Toronto Condos are also forecast to hold up better in this market than single-detached construction as the price difference between the two is substantial.

Balanced resale market conditions with sales volumes edging down and more listings come on stream like Toronto Condos, should moderate the average market price increases into mid-single digit range.

The increasing choice and affordability in the Condo Market across Canada and especially Toronto will continue to attract first time buyers to real estate. Adding to this broadening buyer pool will be single female condo buyers who in turn will also take advantage of these favourable market conditions.

New flexible financial products along with affordable interest rates will also continue to attract buyers.

Between 1998 and 2007 Canada’s housing boom have soared 65 per cent with average price gains of 6 per cent per year.

Canadian domestic economic fundamentals are still encouraging but there are downside risks brought on by the U.S. economic outlook regarding their financial market activity. This could restrain Canada’s overall housing performance.

The Toronto Condos Market forecast for 2008 is for moderate growth with average price increases of 6-9 percent in overall performance.

Iris Li is very active in the new and resale Toronto Condo market and you can visit her Toronto Real Estate website for current Mls listings.