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HOUSING MARKET ANALYSIS FOR 2011

According to the latest housing report released by Re/Max Canada, residential values are expected to climb further in 2011 and housing sales will stabilize in most areas across Canada.  While home buying activity in 2010 fell short of 2009 levels, housing values continued to climb, with virtually all cities across Canada reporting an increase in average prices, ranging from just under 1 per cent to 15 per cent this year.  Lower inventory levels, in many markets offset the effects of diminished demand and helped fuel pricing; an estimated 7% increase in average value from 2009.

In terms of resale housing activity for 2011, a "new normal" will be seen as we actually return to a more "traditional" real estate cycle.  The past decade was truly unprecedented-never before have we experienced a run up that was as strong or lasted as long. With inventory levels anticipated to increase, steady demand, moderate economic growth and the continuation of low interest rates, we will see greater stability and more normal, balanced market conditions, with buyers maintaining a slight edge.  Canadian housing sales are predicted to mirror 2010 levels at 441,000 next year, while average prices are forecast to escalate three per cent to $350,000 by year-end 2011.  

For a greater understanding of the market conditions in your area and the impact on the value of your property, please contact me for a confidential, no-obligation consultation.

Sincerely,

Karen Gurland