CREA released a news report today announcing that home prices will stabilize and remain stable. Gregory Klump the cheif economist for CREA said that while home prices tend to rise in cycles sharp growth followed by periods of stability. Income on the other hand tends to rise at a more regulated rate. Prices were stagnant through the 90's while income continued to rise. Booms occur to make up for the difference between incomes and home prices.
The meltdown in the US home prices is not anticipated in Canada because of our more conservative lending policies. The US also had a massive over supply of housing.
Sales were forcast in Feb by CREA to be up in 2010 by 13% and down 7% in 2011.
I think that while forcasts for the national average are interesting to look at they are not always accurate and locally not very relavant. The statistics from Vancouver can tilt the stats in BC.
Statistical information can be useful in establishing trends over time. Real estate is a very local thing and is suseptable to local employment rates, develpement, interest rates and even the value of the Loonie.
If you are thinking about buying or selling real estate in the Nanaimo area feel free to call me for advice.
Douglas Belcher
RE/MAX of Nanaimo
250-619-6012 CELL
250-751-1223 OFFICE
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