According to a report,
Royal LePage, a real estate services firm, expects the average home price in
Canada to see an increase of 3% to hit $348,600, while it is likely that there
could be a 2% fall in transaction numbers. Improvements in the economy combined
with low rates of interest will fuel this increase, with Royal LePage expecting
a steady and modest price rise, continuing on from last year.
Following an unremarkable third quarter in the last year,
home prices saw a year-on-year rise (between 3.9% and 4.6%) in the fourth
quarter. Such a growth was typical of the trends observed when the recession
was ending, said Royal LePage. With homebuyers taking advantage of the
prevalent low rates of interest (which will rise in the future), Royal LePage’s
report expects good sales in the first six months of 2011.
CEO of Royal LePage Phil Soper said that Canadians will be
pushing to complete home buying transactions, keeping anticipated future rate
hikes in mind. This, he added, would contribute to an appreciation in home
prices in the beginning of 2011. The rush to buy is obvious given the fact that
home buying is bound to become more expensive after the mortgage rates come
back to previous levels from their current rock bottom levels. Mortgage brokers and
lenders alike may have a busy first half of 2011 due to an expected buying
spree.Royal LePage expects the biggest gains in home prices to
occur in cities where the prices are under the national average. The housing
market in Alberta is also forecasted to be fuelled by a strong hiring climate
this year.
