One of the reasons why the U.S. real estate market is so weak is because there is very little mortgage money available! Americans are having trouble buying. There are all sorts of stories about people who want to snap up some good buys but their banks won't finance. I heard of one buyer with $400,000 down who wanted a $450,000 mortgage to purchase a property at $850,000. And could not find a lender! On the other hand foreign buyers are scooping up U.S. properties by paying either cash or financing off shore.
Foreign buyers are not big players in Canada right now because they feel there are better buys south of the border. But long term, they will return because Toronto has better fundamentals long term - economics - employment and incomes, mortgage funds for non-residents, and stable real estate prices.
So what are you hearing? When will real estate and condos be back in vogue?