Author: rory0223
The Canadian housing market has been hot throughout the past decade, however it will cool over the coming years as higher interest rates begin to take effect and the population ages, according to the latest report on real estate trends from Scotiabank.
Meanwhile, we expect a strong housing market this spring as buyers are trying to beat higher interest rates and the July 1st, introduction of the harmonized sales tax in Ontario and British Columbia.
The report noted that the housing market held steady through the recession; this time last year economists had expected to see the market fall amid rising unemployment and fading consumer confidence.
As we saw, this was not the case. Sales volumes and prices held steady as buyers took advantage of historically low interest rates.
Real home prices increased an average of 5.4% annually from 2000 to 2009, this being the strongest period of price appreciation in 50 years.
Canada’s recovery has outpaced the world’s developed countries.
Home prices in the 4th quarter of 2009 were up 19% year over year.
2010 is expected to mark a transition year as the boom of the housing market gives away to a sustained period of more calm housing activity.
Scotiabank expects interest rates to rise about 2 percentage points over the next year as the Bank of Canada tries to alleviate any inflationary pressures in the economy.
Rita Baxter
Broker of Record with Town and Country Realty
www.lloydminsterrealestate.ca/
