“Canada’s economy has performed relatively well during the recent global economic slowdown and our resale housing market remains stable and healthy,” says John Geha, president of Coldwell Banker Canada Operations ULC.
Canada’s stable economy, its reputation as an immigrant-friendly nation, and housing prices that seem like a bargain on an international scale add to the country’s global appeal. The forecast for 2012 and 2013 is that the Canadian real estate market will be stable, favoring neither buyers nor sellers. (Read the full Canadian Property Trends MarketWatch here.)
Canadian Property Market Summary
The average home price in Canada is expected to increase slightly in 2012 and 2013, with sales projected to increase marginally. Canada’s banking system has been rated the soundest in the world by the World Economic Forum, and the Bank of Canada has continued to hold interest rates at record lows. Demand for housing is also expected to increase due to a wave of skilled foreign immigrants looking for housing.
Canadian Resale Market Stable
According to the Canada Mortgage and Housing Corporation (CMHC), Canadians can look forward to two more years of stability in the real estate market. Highlights of the CMHC forecast for 2012 and 2013 include:
• MLS® sales are expected to remain stable, with more than 457,000 homes trading hands in 2012.
• Home sales are expected to rise slightly in 2013, surpassing 468,000 resale units sold.
• The average MLS® price for 2011 was $363,000. In 2012, the price is expected to edge up to $368,900 with an additional increase in 2013 to $379,000.
Canadian Interest Rates
The Bank of Canada announced it was holding interest rates at near-record lows for 2012. Mortgage rates, particularly short-term and variable, are also expected to remain at near-historic lows. Closed mortgages from major lending institutions are about 5.25% for a five-year mortgage and 3.5% for a two-year term.
For additional information on Canadian property trends, including analysis of local market indicators for 11 major Canadian cities from Vancouver to St. John’s, read the full Canada MarketWatch here.