Scotia's Global Real Estate Trends report - Year-End Review And Outlook

December 23 2010 - Canada had one of the better performing housing markets in 2010, according to a Scotia Economics year-end review, though the outlook for 2011 anticipates a fairly lacklustre year.

Scotia's Global Real Estate Trends report tracked housing in 12 advanced nations, and found that Canada was one of six countries this year where inflation-adjusted home prices increased.

The report however, also found that this country's housing market was one of the most volatile. Factors such as the introduction of the harmonized sales tax in Ontario and British Columbia, expectations of rising interest rates, and changing criteria for mortgage lending all played a part in the volatility.

We are neither overtly optimistic nor pessimistic regarding the outlook for 2011.On the one hand, we expect interest rates to remain at historically low levels, with the Bank of Canada deferring any further rate hikes until late 2011 given an uncertain global economic outlook and subdued inflation, and longerterm borrowing costs drifting up only modestly. This is an extremely powerful inducement for both firsttime and move-up buyers and should maintain a decent level of sales.

Click here to read the full report

Marlene Ofter

Marlene Ofter

Certified Real Estate Broker
CENTURY 21 Max-Immo
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