Now is the time of a year when we go back and reflect ourselves with the experiences we had in 2010. As we exited through 2010 and embrace ourselves towards the new chapter of our life in 2011 we then start to wonder what's next for us in 2011.
My personal opinion of Real Estate Market for 2011:
Real Estate market will tend to stabalized itself for 2011 as also predicted by CREA The Canadian Real Estate Association the most sought after when it comes to real estate facts and forecast, predicts that 2011 may be a buyer's market an overall decline of 0.9% in home prices.
With the market on its way to recovery there are few things we still have consider, the consumer confidence and the contineous mortgage rate hike towards 2011. In my personal opinion mortgage lending rate will continue to rise in the upcoming months to come as the housing prices stabalizes itself.
This sounds like a bad news but not really if you look at it in the bigger picture. First, the government needs to increase the mortgage interest rate in order to put a break on the overheating housing market we had late in the 2010. Second, they have to re-assure that they are not sending a false confidence in the market. They need to send a signal to consumer that the mortgage rate will rise in the future to discourage those who speculate and take on mortgage they can't afford. Third, with the mortgage lending rate at historically low the goverment needs to increase it to offset inflation. Our economy will not grow if we continue to be at the same phase.
So for those who is ready for home ownership specially for first time home buyers 2011 might be a year for you as you can expect a reasonable well price homes. If you wan't more information please contact me.