Part 1 of 2
*According to Canada Mortgage and Housing (CMHC) the end of 2007 had resale home sales finished with about 7.6% increase over 2006..
*In 2008 the level of MLS sales is expected to fall by 3.9% while additional decreases are expected in 2009.
*However growth in the average MLS price has remained high mainly because of continued strong price pressures in Canada's western provinces. However most resale markets are moving towards more balanced conditions.
*Despite some global financial instability with regards to the US housing market, Canada continues to experience robust employment levels, some ongoingi ncome gains and relatiely low mortgage rates!
*Having the interest rates maintained at a relatively low level has strongly supported our Canadian housing market, even though housing starts are expected to decrease in 2008....mainly due to increase in house prices which more then likely will push mortgage carrying costs higher for home buyers.
*And although housing starts are likely to decline this year, nevertheless the market remains strong and 2008 will mark the seventh consecutive year in which housing starts exceds 200,000 units....Now thats a Wow!
Here are the Provincial Highlights from the Report:
British Columbia's Housing starts which have been above historic averages have started to decline in 2008. The tight labor market and high levels of confidence will probably help offset the dampening effect of rising morgage carrying costs on new and existing homes. Average MLS price is expected to grow by 6% this year and 5% in 2009.
Most of this moderation is due to increased listings and fewer resales which is bringing more of a balanced supply.
Alberta continues to experience very low unemployment and continuing overal prosperity. Despite these posities though the province is expected to face a drop in net mirants betwen now and the end of 2008 due to the growing difference in provincial house prices and improved labour market conditions in other provinces.
These factors will probably combine to reduce housing starts...but the MLS price is still expected to rise by 3.9 percent this year and 5.4 % in 2009. A little bit of an adjustment from the 24.4 % in 2007!
Saskatchewan has been experiencing steady economic growth, healthy employment and gains in net migration. There is a strong housing demand with total housing starts last year reaching a 24 year high. However escalating costs have pused down sales a bit this year, with the average house price expected to increase by 26.4% in 2008 and 8.2 in 2009. (Amazing how they come up with these figures)
Manitoba is one of the five provinces whose economic growth is expected to exceed the national average for 2007. This success has led to a 5 year high in job creation, which has increased net migration to the highest levels since 1982. These factors should continue to bump up new home construction...with 2008 prices expect to edge up slightly, and the average price rising by 9.8% in 2008 and 5.7% in 2009.
Ontario's average prices are expecting increases of 6.2% in 2008 and 2.9% in 2009. the Ontario economy is expected to improv slightly during this year which will help sustain housing demand across the province. New construction is expected to be moderate between now and the end of the year with housings starts expected to move up with a slight downward trend starting in 2009.
Part 2 - Continued - Canadian National Housing Outlook
If you or someone you know is thinking of buying or selling property in Abbotsford, Chilliwack, Langley or anywhere in the Fraser Valley Area of B.C. - or if you're considering a career in Real Estate or would like more information about Keller Williams please give Liz Moras a call! Managing Broker and Team Leader - 604-799-0459 or e-mail at lizmoras@shaw.ca.
Copyright © 2008 By Liz Moras, All Rights Reserved
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