Residential values expected to climb further in 2011
as housing sales stabilize in most major centers
Ample inventory levels, steady demand, and moderate growth, both in terms of sales and prices, will characterize the market in 2011. While the pace may appear lackluster in comparison to what we’ve grown accustomed to, it underscores the principles of real estate 101:
The market is cyclical. All boats rise and fall with the tide.
In terms of resale housing activity, what many are talking about as the new normal is actually a return to the traditional real estate cycle. The past decade was truly unprecedented—never before have we experienced a run up that was as strong or lasted as long. As we have digressed from the typical pattern, people have forgotten what the usual healthy cycle looks like, but all the hallmarks are there.
Although improved economic fundamentals will have a positive impact on Canadian housing markets moving forward, the forecast for residential real estate sales remains static in most major centers in 2011, according to a report released by RE/MAX
The RE/MAX Housing Market Outlook 2011, examining trends and developments in 26 major centers across the country, found that home-buying activity in 2010 fell short of 2009 levels. Housing values, however, continued to climb, with virtually all areas reporting an upswing in average price, ranging from just under one per cent to 15 per cent this year. Lower inventory levels in many markets offset the effects of diminished demand, propping-up price in almost every instance.
Greater stability is expected to characterize the markets in 2011, with Canadian housing sales predicted to mirror 2010 levels at 441,000 next year, while average price is forecast to escalate three per cent to $350,000 by year-end 2011.
Looking forward, we see steady improvement in provincial and local economies—which will bode well for housing markets across the board. The relentless drive in the market reminiscent of years past will be gone and instead, we can expect to see more normal, balanced market conditions, with buyers maintaining a slight edge.
Low interest rates and improving consumer confidence levels should stimulate home-buying activity at all price points next year. Overall gains will be more muted—a welcome reprieve for purchasers. 2011 will be a year that will see more widespread recovery across a broader array of economic sectors, setting the stage for a better 2012.”
In the meantime, a number of factors will continue to support sustained sales and price growth in the months and years ahead:
Land scarcity, intensification, urban renewal, infill and renovation will continue to drive up values—regardless of supply and demand—in major metropolitan areas. The Canadian housing stock is ever-evolving, particularly in the central core of each city. With average price pushing closer to or well past the $300,000 mark in the vast majority of major centers, and affordability of single-family homes diminishing, the demand for attainable product will rise in tandem, bolstering the growing condominium segment in the years ahead.
The upper-end of the market continues to be a strong indication of the overall health of Canada’s housing sector. Typically the first segment to soften in a downturn, luxury homes posted record sales activity in 2010, and demand is expected to remain solid in 2011. Strong sales in the high-end will continue to prop up average prices.
Immigration will remain a serious force stimulating demand, particularly given the penchant for home ownership among today’s new Canadians. While the formation of new households used to take an average of five years, a growing number of newcomers arrive skilled, financially secure, and ready to make their home-buying moves. It is estimated that Canada will average 250,000 new immigrants annually.
In the year ahead, federal, provincial and local stimulus in the form of continued infrastructure spending and capital projects will be a considerable boon to economic stability and employment, providing consumers the confidence to move forward with real estate purchases.
Volatility in the money markets will continue to drive buyers to the tangibility of home ownership, both as a reliable long-term investment and a form of shelter, particularly given low vacancy rates and a lack of new rental construction in a number of major centers.
The Real Estate Market Is Local
and sometimes hyper-Local
This Information represent a broad range of properties across the Canada.. The best way to determine the Value of Your Home is a Comparative Market Analysis. To discuss today's local Uxbridge Real Estate Market Conditions, the current value of your home or the marketing of your Home please give me a Call or Text me