According to the deputy chief analysis of BMO, Canada will experience modest growth in 2012.
What is his forcast for the Canadian Real Estate Market?
Ultimately, we are affected by the trends of the United States economy. We have been doing a little better, especially in the housing market and job market," Porter told The Recorder and Times. Porter noted an improvement in the job market showing the unemployment rate decreasing.
The only significant change Porter saw was when the federal finance department moved to tighten the mortgage lending roles by shortening the amortization.
"We thought it would put a chill into the market, but it didn't have a big effect," Porter said. "Ottawa, in recent years, has taken three separate steps to try and cool the market, but overall, the housing market still looks healthy."
Interest rates are also likely not moving, he said. An important factor for this, said Porter, is the U.S. Central Bank federal reserves has almost guaranteed short-term interest rates won't be moving. As the Canadian market takes its cues from the U.S., short-term interest rates are unlikely to change over the next 12 months, much like the previous 12 months.
A stable economic growth is predicted by Mr. Porter in 2011. With a tug of war expected between buyers and sellers through out the coming year and low interest rates sticking around, Mr Porters Forecast seems accurate.