Hugh Message

A "message" from Message - Home buying forecast stays strong into 2008

I don't know if you've noticed it, but Canadians are feeling pretty upbeat about the economy these days. And why not? Interest rates are low and will stay that way for some time, employment is high and will continue to rise. Federal and provincial budgets are offering nice ‘perks' for middle-class working families. Incomes are rising. Small wonder consumer sentiment is so upbeat. And it all adds up to spell good news for the housing market too.

In fact, the Canadian Real Estate Association (CREA) recently published its forecast for 2007 and 2008 and CREA predicts the housing market will stay on strong footing over the next couple of years. The number of homes sold nationally is forecast to ease slightly but will remain above the 450,000 mark, which is still a near-record level. Annual activity is forecast to rise this year only in Saskatchewan and Manitoba, but will start to inch lower in other provinces. But bear in mind, this only refers to the actual number of resale homes that will change hands. Home prices, on the other hand, will continue to move upward although not in the double-digit increases we've seen in recent years. CREA's forecast calls for the national MLS® residential average price to rise modestly over the next two years. Resale housing markets will become more balanced in all provinces, but will remain tighter in Western provinces where the annual price increases will be the largest.

The good news for home-buyers is there will be a good inventory of listings to look over, prices will not be spiraling out of reach while you're still looking for the right home, and once you've bought, you can still expect your property values to appreciate even in the first years in your home.

Of course, that's just the ‘big picture'. Home prices vary dramatically from market to market, and even within the same community. If you're wondering how much home you can afford, or where you can find great values, then I hope you'll call me first. As your local Macdonald Realty professional, I've got my finger on the pulse of our real estate market, and I'd like to put my expertise to work for you!

Published Saturday, March 31, 2007 2:58 PM by Hugh Message