Housing Market Expectations | Remainder of 2010 Beginning of 2011

Housing starts are projected to decline slightly from an estimated average of 184,000 units in 2010 to an estimated average of 176,900 in 2011. while sales of existing homes through the MLS are forecast to dip slightly from an expected average of 463,800 sales in 2010 to 456,000 in 2011.

Resale prices, while predicted to move down in the 3rd quarter of 2010, are expected (and have)  to show modest growth following as balanced market conditions curtail the upward pressure on house prices. Canadian Mortgage and Housing Corporation (CMHC) epects the average MLS price to be $337,450 in the final months of 2010, rising to $342,200 in 2011.

It is difficult for anyone to make accurate or precise housing predictions because of continuing economic uncertainty both in Canada and the United States. Keeping in mind that the Canadian housing market is extremely strong compared to that of the United States. A slower employment growth in Canada would lead to a lower demand for housing, while a stronger economic recovery could boost employment growth and lead to a stronger housing demand. Additionally; if mortgage rates remain lower than projected and new listings decrease, we would see another sellers market, leading to increased housing prices.

Nobody realy knows what the future holds, especially when market conditions and media reports can affect different cities and neighbourhoods in completly different ways. Lets make some time to discuss where your particular neighbourhood may be headed and review your own personalhousing needs and opportunities.