Three ingredients drive Canada's housing market
There's been a lot of media attention about the real estate market in the U.S. lately. So much so, in fact, that some of our customers are either getting confused about the recent reporting, or wondering if some of the problems south of the border could possibly affect us here. First and foremost, let us clarify that the influences you're seeing at play in the United States when you turn on your TV every night are definitely not at work here. In fact, industry sources and economic forecasters say that all the positive economic drivers are in place for a continued strong market, so we're looking in pretty good shape.
According to the Canadian Real Estate Association (CREA), there are three key economic ingredients that will keep Canada's housing market on a different track from the U.S. One is consumer confidence, the second is employment, and third is affordable interest rates. Right now, the news in these three critical areas is good on all fronts. CREA's Chief Economist forecasts that the Canadian housing market in 2008 will pull back from last year's breakneck pace, but it will still be the second-busiest year on record in almost all provinces, with residential unit sales reaching an estimated 512,705 units.
The real challenge for the Canadian housing market will be the extent to which our employment situation and consumer confidence may be affected by a slowdown in the U.S. economy. According to CREA, an economic downturn in the States is expected to result in slower job growth here, but there should still be growth all the same. Despite all the media hype, the reality is that a positive employment picture, not massive layoffs are being forecast in Canada for 2008. Consumer confidence may be side-swiped by stock market volatility and reports that chances of a U.S. recession will put the brakes on the Canadian economy. However, the good news is that with continuing job growth, a low unemployment rate and the absence of widespread layoffs, consumer confidence will bounce back. The domestic economy and the housing market will weather the s ub-prime fallout with the help of lower interest rates.
Whether you're thinking of buying or selling a home - or both -- you'll be glad to know that the three ingredients for a robust real estate market are all in place and market conditions are expected to stay strong throughout 2008. If you bought a home now, forecasts call for its value to appreciate this year and next -- and financing continues to be available at very attractive interest rates. If you're thinking of selling, you can look forward to the average home price in Canada rising to record heights this year. Either way, there's good news ahead. So why not turn those three ingredients into your own recipe for success? Make this your year to capitalize on the opportunities that are present in today's market. We can be there to help you every step of the way. So feel free to contact us anytime, and let's talk about your options.
Joanna
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