Posted by: Nick Ametrano
Interesting industry news coming out on home sales. MortgageBrokerNews.ca reported earlier this week that this year may turn out better than most brokers had feared, as the Canadian Real Estate Association is now predicting a net gain in home sales compared to 2010, and not the net loss it had anticipated. Below is are some highlights from the initial article:
“National sales activity is forecast to reach 450,800 units in 2011, up less than one per cent from levels in 2010,” reads the CREA report, released this week. “We had previously forecast a decline of about one per cent for activity in 2011. National sales activity in 2012 is forecast to ease seven tenths of a percentage point to 447,700 units, which is roughly on par with its 10-year average.”
The new projections come on the heels of last week’s tumult on world stock markets and a pledge by the U.S. Federal Reserve to hold its rates at historically low levels for at least another two years. The decision has likely scuttled Bank of Canada plans to raise its own rates this year, something poised to increase home sales, if only marginally, according to CREA.
“While there had been some talk of potential interest rate increases, that hasn’t happened,” said CREA President Gary Morse. “In fact, rates have actually come down, and are now expected to remain low for the remainder of this year and into 2012. It’s a great opportunity to purchase a property with financing at very favourable rates.”
“Sales momentum was also better than expected heading into the third quarter. As a result, the 2011 national forecasts for sales activity and average price have been raised slightly.”