The Canadian real estate sector has experienced decline over the past few years primarily due to the recession. In 2009, 91,000 of the 415,000 jobs that were cut in 2008 were restored. Canada's unemployment woes factored into to the fall in the housing sector. By 2010, the employment opportunities are expected to climb by 0.9 percent and double that growth in 2011.
In 2010, the unemployment rate is expected to rise to about 8.4 percent. The housing market could also be affected by population growth. More square footage is often required as families add new members to the family. Young, increasing families are often good candidates in real estate. The birth rate has been somewhat lower than normal. This translates into lower housing demand.
Current reports indicate that there could be some signs of the market recovering in 2010 and 2011. A 190,000 unit increase is projected in the 2010 real estate market. This would be an extraordinary enhancement from nearly 150,000 units in 2009. Over 200,000 units are predicted for the 2011 market. Western Canada is expected to rebound before other markets.
In the last quarter of 2010, experts project another decline in housing prices. The average house price last year was $342,231. The price is expected to fall somewhat to $339,126. market activity could increase somewhat with lower prices. Home buyers can expect the average house price to increase to $348,391 in 2011.
The most pricey city to purchase a house in Canada is in Toronto. The average house price is 2010 is forecasted to be nearly $430,000. By 2011, the house owner can expect to pay an additional $10,000 on average for a house in this area. London, Canada is the most affordable place to purchase a house. The average price for a new house is projected to be nearly $220,000 in 2010. Housing prices should just increase to $221,000 in 2011. Some other regions that have experienced rapid growth include the Vaughan real estate sector as well as Markham were Markham homes for sale simply cannot keep up with the demand from buyers.
A one year posted rate can be secured by house owners with mortgage rates ranging from 3.7 to 4.3 percent. Three and five year posted interest rates could span from 4.4 to 6.0 percent. Prospective house buyers and investors could experience an increase in mortgage rates by 1 percent or more in 2011.
In 2009, current house sales rose and are expected to carry on to rise in 2010. The demand for current house sales exceeded the supply; therefore, potential house buyers contemplated, new houses as an alternative. The immigration rate has increased over the last few years. The condominium and rental market has primarily filled the vacancies. housing market experts expect the vacancy rates to remain constant in the next few of years.
Recently, government officials have examined the housing market situation and decided to regulate housing activity. Mortgage insurance may now be secured by the government. This may in essence increase the down payment that house buyers may have to qualify for a house mortgage. Larger initial investments may dissuade some potential house buyers from purchasing right away. This could also discourage market activity.
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