Royal LePage announced yesterday that the Canadian housing market will see a modest price increase of 3.5% across the board raising the average price to $317,288. The primary reason for the lower increase is that affordability is becoming an issue, especially with first-time Buyers, which in turn will result in less demand in 2008.
I think if interest rates take another drop in the new year and employment stays strong then home prices next year will exceed this 3.5% forecasted increase. Although inflation crept up in November to 2.5% annually (up from 2.4%), the core inflation rate which most economists are concerned about fell to 1.6% annually from 1.8% in October. If the core inflation rate continues to hold steady or even decrease there will be pressure on the Bank of Canada to continue to reduce interest rates.
When you look at houses prices nationally, Quinte Real Estate seems relatively inexpensive with an average house price of $197,561. With house prices 1/3 less than the national average, it's no wonder there has been increasing interest for Quinte Real Estate from the larger urban areas in Ontario and beyond.
As the aging baby-boomers prepare for retirement, many are deciding to retire to smaller centres. Prince Edward County and other Quinte Real Estate has become popular with this age group as a place to retire to and the lower house prices make it even more attractive.
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