This is the latest press release from CREA and indicates that they are
becoming bullish on the Canadian real estate market for the upcoming year!
I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
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CREA Boosts Annual Resale Housing Forecast
OTTAWA - February 8, 2011 - The Canadian Real Estate Association (CREA) has
revised its 2011 forecast for home sales activity via the Multiple Listing
Service(r) (MLS(r))
Systems of Canadian real estate Boards and Associations, and extended it to
2012.
Sales in the second half of 2010 rebounded faster than CREA had previously
expected.
"The hand-off going into 2011, together with the highs and lows for sales
activity posted
in 2010, provided guidance for CREA's revised forecast," said Gregory Klump,
CREA
Chief Economist.
"Home buyers recognize that low mortgage interest rates represent a once in
a lifetime
opportunity. At the same time, they expect that rates will rise, so they're
doing their
homework in order to understand what it could mean in terms of higher
mortgage
payments down the road before they make an offer," said Georges Pahud, CREA
President. "The housing market and buyer psychology is different now than it
was at the
beginning of last year, so buyers and sellers would do well to consult their
REALTOR(r)
to understand local market trends."
The upward revision to CREA's forecast for 2011 reflects recent improvements
in the
consensus economic outlook and a further expected improvement in consumer
confidence. National sales activity is now expected to reach 439,900 units
in 2011,
representing an annual decline of 1.6 per cent. In 2012, CREA forecasts that
national
sales activity will rebound by three per cent to 453,300 units, which is
roughly on par
with the ten year average.
"Recent additional changes to mortgage regulations will further ensure that
buyers don't
buy more home than they can afford when interest rates inevitably rise,"
said Klump.
"The announcement of the new changes to mortgage regulations will likely
bring forward
some sales into the first quarter that would have otherwise occurred later
in the year,
particularly in some of Canada's more expensive housing markets. This is
expected to
produce a milder version of the volatility in sales activity that we saw
last year which
resulted from additional transitory factors."
Three transitory factors contributed to volatility in sales activity last
year: changes in
mortgage regulations announced last February, the early withdrawal by the
Bank of
Canada of its conditional commitment to keep interest rates on hold until
the second half
of 2010, and the introduction of the HST in BC and Ontario during the summer
of 2010.
CREA expects that home sales activity will gain traction after dipping in
the second
quarter as the economic recovery and job growth continue, incomes grow, and
consumer confidence further improves. "Even though mortgage interest rates
are
expected to rise later this year, they will still be within short reach of
current levels and
remain supportive for housing market activity. Strengthening economic
fundamentals will
keep the housing market in balance, which will keep home prices stable,"
said Klump.
Page 2
The national average home price is forecast to rise 1.3 per cent in 2011 and
2012, to
$343,300 and $347,900 respectively. Average price is expected to rise
modestly in most
provinces, reflecting the continuation of a healthy balance between supply
of, and
demand for, homes listed for sale. Although the supply of new listings is
expected to
trend higher, the expected continuation of sellers' market conditions in
Manitoba is
forecast to result in a bigger percentage increase in average price in 2011
and 2012
compared to other provinces.
