Toronto home buyers may be baffled, but builders are bullish

Interesting piece from the Globe and Mail’s Carolyn Ireland that discusses our reactions to news about the economy, and some of the condo development happening in Toronto and Calgary. The average home price in Toronto is up and bidding wars are a common occurrence:

“Canadians don’t know what to think about the economy any more,” says Norman Baillie-David, a consumer confidence guru.

Every month, Mr. Baillie-David surveys Canadians to find out how buoyant – or pessimistic – they are feeling about their prospects.

Optimism surged in January only to be dragged down by the mid-winter blahs in February. That bump is typical of the roller-coaster ride Canadians have been on for a while now, says the vice-president of research firm TNS Canada.

Not that he blames his research subjects; Mr. Baillie-David attributes the uncertainty to the conflicts in economic news, which seems positive some days and negative other days.

He points to jobs reports, which were most recently negative in Canada and positive in the United States. Sometimes it’s the other way around.

At the same time, Canadians in many provinces are bracing for cuts to the ranks of public servants, he points out.

The crisis in Europe over the state of Greece and the confusing signals from the U.S. economy are adding to the murkiness.

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