House prices will fall next year, predicts the Canadian Real Estate Association (CREA), especially in BC and Ontario. CREA believes that the house prices are due for a demand driven downturn that will be brought on by higher interest rates and a currently overheated market. We are due for a correction.
As a homebuyer, what does this mean to you? Not much. What you lose on the swings, (higher interest rates) you make up on the merry-go-round (a predicted 1.5% decline in overall home prices).
As a home seller, it is currently a sellers market in Kitchener-Waterloo. It has been for all of 2010 (so far). If your thinking about moving, selling now would be a great idea, but then we’re going to have to find you somewhere to live, and that will be a bit of a challenge.