In the Canadian Real Estate Association's (CREA) 2010 forecast for home sales via the MLS® there is an indication of how the market might be affected by changes to interest and tax rates.
The good news is that CREA forecasts national activity will reach 527,300 units in this years 2010. Thats a rise of 13.3 percent from last year 2009. Continued low interest rates are boosting housing demand in nearly all provinces during the first half of this year. Both British Columbia and Ontario were the two provinces where most buyers and investors were movtivated to avoid HST before it came into play on July 1st, 2010.
During the second half of 2010, CREA expects national activity to ease, as the last of the pent-up demand for housing is exhausted and interest rates start rising again. Looking even further ahead, CREA expects interest rate increases to contribute to a seven percent decline in sales activity for 2011, but doesn't expect the higher rates to put housing out of reach for most buyers (Realty Report®, Volume 6, Issue 5).