Canadian Property Market Not Slowing Yet Says CREA
24 August 2011
According to the Canadian Real Estate Association, the property market here isn't slowing down just yet. It says that, even though the average price of a home fell $10,000 in July compared to January, prices are still 9.3% higher than a year ago.
The CREA has also experienced stronger sales activity than predicted so far this year, and now expects sales to be 0.9% higher this year compared to last year, and prices are expected to increase by 7.2%, giving it an average price of $363,500.
This is in contrast to other real estate specialists who predict that property prices will begin to decline during the second half of this year, with that decline continuing into next year. The CREA is forecasting that sales figures will drop by 0.7%, but that this won't affect prices as inventory will rise.
Interest rate rises had been forecast, but in fact the opposite has happened and rates have actually decreased and are expected to remain low for the rest of this year and into next year.
British Columbia is the only province where prices are predicted to drop in 2012, but the CREA is predicting a drop of just 1.8% from $564,700 in 2011 to $554,800 in 2012. This comes on the back of average price gains of 8.5% in 2010, and 11.8% in 2011. It is also expected that sales activity in Vancouver and Toronto will return to more normal levels, which is expected to moderate average prices in these areas and also nationally.