It’s that time a year where we predict what will happen next year. According to this market forecast, not a single Canadian city will see house prices fall in 2011. In fact, national average price are forecast to rise by 3% next year, bringing the average sold home price to $350,000.
I like round numbers.
There will be fewer sales however. It is predicted that we will have around 5% fewer transactions and 2011. We are returning to a more traditional market situation.
Earlier predictions, from the Canadian Real Estate Association were not so positive. CREA warned that lackluster economic and job growth and resumption of interest rate increases would negatively affect real estate markets across Canada.
With that in mind, I guess we will have to wait and see what happens in January or February with interest rates to see where our real estate markets are heading next year.
According to The Economist magazine, Canadian real estate prices are over valued by almost 24%. In it’s report that compared twenty countries around the world. Canada had one of the highest appreciation rates, but still seemed modest compared with Australia at 63% and Spain at 48%.
Experts abound. Someone is bound to be right.
Keith Marshall as a realtor with Prudential Grand Valley Realty serving Kitchener Waterloo and Cambridge. You’re thinking of buying or selling a home, please give me a call.