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Tuesday, December 7, 2010

Canadian Mortgage Broker News - Housing sales to remain static for 2011: Re/Max

Housing sales to remain static for 2011: Re/Max

| Tuesday, 7 December 2010


Despite an improved economy, residential real estate sales are expected to remain static in most major centres next year, according to a Re/Max report released Tues. Dec. 7.
The Re/Max Housing Market Outlook 2011 saw this year’s home-buying activity fall short of 2009 levels. By year-end, approximately 441,000 homes will have been sold nationally, a five per cent decline from the 465,251 sales reported in 2009. Housing values still continued to rise in all 26 areas surveyed, and was up an estimated seven per cent to $340,000 compared with $320,333 a year earlier.
Though some see this resale housing activity as a “new normal,” it is actually a return to the traditional real estate cycle, said Michael Polzler, executive vice president and regional director of Re/Max Ontario-Atlantic Canada.
“The past decade was truly unprecedented—never before have we experienced a run-up that was as strong or lasted as long,” added Polzler. “As we have digressed from the typical pattern, people have forgotten what the usual healthy cycle looks like, but all the hallmarks are there: Ample inventory levels, steady demand, and moderate growth, both in terms of sales and prices, will characterize the market in 2011.”
Greater market stability is expected to take place in 2011, with Canadian housing sales predicted to mirror 2010 levels at 441,000 next year, while the average price is forecasted to rise by three per cent to $350,000 by year-end 2011.