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Dec
03
Canada’s Real Estate Market Stays Strong
Written by radu
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If you’re like most Canadians, you may have seen stories in the media warning of dramatic changes in some U.S. real estate markets recently. If so, you may also be wondering what’s in store for Canada . Take heart; the news here north of the border is quite positive and indicates a healthy and more moderately priced real estate market.
Despite a few cautious predictions early in the year, the latest industry statistics show that Canada ’s resale housing market will edge past 2005 sales to set new records in 2006. According to a forecast prepared by The Canadian Real Estate Association (CREA), national resale housing activity is again expected to surpass last year’s totals to reach 483,265 units sold. This will represent Canada ’s sixth consecutive annual record for the number of homes sold via the MLS ®. Following this year’s record-breaking pace, activity is expected to ease by 4.8 per cent in 2007 as sales return to more normal levels.
Home prices are expected to increase at an even greater pace than the number of homes sold. After climbing 10.2 per cent in 2005, CREA projects that the national MLS® residential average price will increase by a further 11.4 per cent in 2006 and 6.0 per cent in 2007. Annual increases in average price will remain below 10 per cent in all provinces in 2007.
Housing markets in Western provinces will remain tightest, with prices increasing at double the rate of other provinces. A gradual decline in sales activity and an increase in new listings is causing many housing markets across the country to become more balanced, which has begun to temper price increases. CREA expects this trend to continue over the rest of the year and into 2007.
A weakened U.S. economy has contributed to low interest rates, both here and across the border. That leads to very affordable mortgage rates, a key factor in maintaining this active market. High employment, upbeat consumer confidence and rising incomes will all continue to play a major role in assuring strong housing activity in markets all across Canada .
f you’d like to know more about what the real estate market has in store, and more importantly, what’s happening in your own local market, contact Radu Medan. You can benefit from Radu’s in-depth local knowledge for all your home buying or selling needs.
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December 3rd, 2006
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