W20

Submitted by Jasmina on Mon, 2008-05-26 23:06.

Past weeks were unbelievably busy for me and I didn't have time to post some great news about Richmond Hill Real Estate Market and just released Scotiabank Real Estate Forecast for Canada:

(1) Real Estate Outlook: No Major Correction in Canada's Housing Market

The latest Real Estate Trends Report issued by The Bank of Nova Scotia explains why the market has a more stable base than it did prior to the crashes of the 70s and 80s. Adrienne Warren, senior economist at Scotiabank, said there are a variety of reasons for confidence in the continued health of the housing market:

  1. Unlike in the US, home prices in Canada are not substantially overvalued
  2. Speculative home buying is not widespread
  3. The real estate market is not overbuilt
  4. Households are not over-leveraged and
  5. Overall mortgage quality is still sound.

Still, the 10 per cent average annual increase in home prices over the past half decade was unsustainable, and a return to more historical norms is a welcome development, she said. "We predict a soft landing for the Canadian housing market, with somewhat lower sales and construction, and a period of relatively flat inflation-adjusted home prices... We expect overall sales volumes in 2008 to total about 15% below last year’s record levels, and home prices to increase on average by about 5%," Ms. Warren said.

The past decade has been one of the best on record for residential real estate in the Toronto area. Housing boom is ending, but there is no bubble to burst in The Greater Toronto Area real estate market.

(2) Toronto Real Estate Board: GTA Resale Housing Market Highlights

Greater Toronto Area neighbourhoods that experienced heightened activity during the first half of May are:


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