|Price Stability of Housing in Canada in 2012|
|Real Estate Trends|
Canada’s housing market can be characterized by typical swings in housing market conditions relating to demand and supply. These conditions eventually have an effect on the prices of houses. These fluctuations may have effects on the housing market in Canada for a period of a few years. For instance, comparing the average annual pricing of homes, it is evident that between the fiscal years of 2007 – 2008 there was a decrease in housing prices. This decrease was a result of the weakening demand of the existing homes due the the global recession.
However, the improving economy and high immigration levels has brought a great boom to the real estate market in Canada in since 2008. Also playing a major role in stabilizing Canada’s housing market are low mortgage rates. As a result, the prices of houses are increasing, though at a moderate pace in 2012. This slow increase in pricing has had a positive impact on the real estate market in Canada in 2012. In essence, the change of economic and demographic fundamentals has much influence on housing prices in Canada. More specific factors that also have a positive influence on house prices in Canada are rising income growth and employment.
Conversely, during the periods of economic downfall, house prices can be subjected to downward pressure. These periods are the biggest sources of risk to the real estate market in Canada. Fortunately, price stability can be quickly regained through the improvement of the economy as a whole. As mentioned earlier, low mortgage rates are one of the best ways to create housing price stability. Price movements can be forecasted by the analysis of present home sales compared to new listings. Imbalances of the two may lead to serious consequences to the real estate market in Canada in 2012. Canada’s housing market, however, should remain alive and well as the Canadian economy is steadily strengthening.
Markham Area Real Estate
- October 19, 2012
CENTURY 21 Leading Edge Realty Inc., Brokerage*