Please, just tell us if it’s going up or down: ReMax adds to the confusion about the real estate market
We have no idea whether Canada’s real estate market is going to grow, shrink, stay the same, or get invaded by martians, but we don’t feel bad about it because apparently nobody else does either. The last six months have seen claims that the market is so over-valued it’s ready to collapse, followed by claims that it’s only a little bubbly, and now the latest report from ReMax says that compared to the roaring growth of previous years 2011 in Canada is going to be a slow one: three per cent growth nationwide, with much of that happening outside of Toronto. From the ReMax report:
The overall health of the Greater Toronto Area’s housing market is perhaps best illustrated by the continuation of price appreciation against the backdrop of softer sales activity. Home sales were front-loaded in 2010 as purchasers moved to get ahead of higher interest rates, tighter lending criteria, and the introduction of the Harmonized Sales Tax mid-year. Economic uncertainty cast a shadow over home-buying activity during the summer months…
Slow but steady economic recovery is forecast for the Greater Toronto Area moving forward. An improving employment picture and healthier outlook should serve to bolster home-buying activity in the new year. Immigration—which has had a major impact on housing in the past—will continue to be an integral part of the market in the future. Low interest rates—expected for much of the year—will also attract first-time and move-up activity in 2011.
So it won’t be bad for the GTA, but home prices won’t go up as fast as they will in other places. Oddly, leading the pack (if ReMax is correct) is St. John’s, NL, where ReMax expects the Lower Churchill hydro project to boost local spending. Ontario, alas, has no big hydro projects left to build near the GTA so we’re left out of that particular stimulus package. In Ontario, more rapid growth will come from the communities outside the GTA, like London-St. Thomas.
• ReMax Housing Market Outlook 2011 (PDF) [Remax]
• Housing market to see ‘greater stability’ [Globe and Mail]
• Home prices expected to keep rising next year: Re/Max [Montreal Gazette]
2 thoughts on “Please, just tell us if it’s going up or down: ReMax adds to the confusion about the real estate market”
Typical realtor..all over the map with all kind of up and down mixed messages… they almost sound like all the economists who are so reactive and wait until they see things happen to keep changing their forecast. Almost sound reaction like Hudak – always wait until Dalton screws up then come up blaming him but never putting out what HE would do different…what kinda world we live in ?
I can appreciate the comment about ‘typical realtor’ as the real estate industry doesn’t do anything to help itself, sometimes for good reason. Publishing broad based information often leads the public to get conflicting and confusing messages but with so many neighborhoods and home types to deal with it is complicated. Real Estate is always a local matter and it is well known that homes in one area may be selling in multiple offers as soon as they hit the market and others may sit and linger before being sold.
If you are truly interesting in real estate ALWAYS talk to a Local Expert, a real estate agent about what’s happening in the area YOU are concerned about.
One other troubling aspect is the reports often include world matters (cheap property in Florida anyone?) because it’s interesting and sells newspapers but only serves to confuse folks looking to buy or sell a home.
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