Real Estate continues to Widen between
Canada
and the USA
According to reports in Canada and the USA, where house prices are sinking further in most areas, the lowest in 12 years, down 9% in November. While in 2007 Canadian house prices has surpassed all previous records.
Almost 500,000 homes traded hands in Canada by December 2007, with home sales up 6% over the previous time last year, mainly in BC, Alberta, Saskatchewan, Newfoundland, and Ontario. Home prices increased over 11% year to date with the average price of a home in Canada now over $313,000. Projections are for home prices are to ease in Canada in 2008.
In Victoria BC, (which has the countries lowest unemployment rate), the prediction for 2008 is for a 4% increase in real estate prices. The average single family home price in Victoria at the end of November is currently near $600,000. Source VREB.
Even with a easing of house prices across Canada, Industry experts are predicting real estate will still break a new record in 2008.
On TV last Night (Dec 29/07)Donald Trump was being interviewed and he is predicting to his studio and TV audience that the US Real Estate Market will Bottom out in the next six months and Now and over the next 6 months is a time to buy real estate as an investment. Donald also said Commercial real estate will correct itself with dropping inventory's next year due to the inability by investors to Borrow money to build new Commercial real estate.
In the US mortgage Interest rates are predicted to continue to fall in 2008. In Canada the economy is strong, and rates have stabilized. The Canadian Lonnie eased up again as the year comes to a close at $1.077 US.
In the USA Donald Trump maybe right... Buy Real Estate Now, while everyone else is sitting on the fence.
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