Real Estate Prices Are Still Going Up
The other day, it happened again. I was sitting in a restaurant and the people at the next table were having a heated conversation about the state of the real estate market. I overhear conversations like this at least once a week and I don’t even get out much. I think people just love to talk about it and everyone has an opinion for sure. Me too. But every now and then, it’s best to check in with the experts and get their take on things.
Canada Mortgage and Housing (CMHC) recently released their Housing Market Outlook Canada for the first quarter of 2008. Here are some highlights:
- MLS® resales broke all records in 2007 with over 520,000 sales.
- Sales levels will drop to about 500,000 units in 2008 and 488,000 in 2009.
- While that is a softening in the market, those kinds of numbers would still be the second and third highest ones on record beating the 2005 previous record of 483,300 unit sales.
In the new home sector, CMHC is predicting a decline in housing starts of about 5-6% in 2008/09 and they report a lower demand for new homes was already felt in the first quarter of 2008 in central and eastern Canada. Based on the sales levels in some of our own new home subdivisions in this area, I would suspect it is true. For new home builders, it’s all about timing and absorption rates. The next couple of years will not be as easy as in the past and I’ll bet we’ll soon see incentives thrown by builders.For a limited time only we’ll finish your basement for free! or stuff like that.
Here’s what the report had to say about resale prices:
- 2007 saw average MLS® house price growth of 10.7% nationally.
- As resale markets become more balanced, prices in Ontario will climb by 6.2% in Ontario this year and 3.8% in 2009. These numbers actually exceed even my own optimistic projections but are in line with what we’ve seen in this area in our first quarter.
So, now you’ve got some ammo for your next conversation about the market. I’ll be listening.
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When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!