It is good news for homeowners planning to put their homes
on the market. According to a Financial
Post report, Ontario could see big gains in home prices as well as sales in
2011.
Central 1 Credit Union, which has operations in British
Columbia and Ontario, predicts that home resales will see an increase of 5%
next year. This translates into listed house resales of 204,000 in 2011 in
comparison to the 194,000 this year. Home prices are expected to see a 4.2%
rise to average at $356,500 next year from the $342,000 in 2010.
Last July, MLS (Multiple Listing Service) home sales saw a
decline, with 155,000 sales reported, raising concern among people in the real
estate industry as well as mortgage lenders.
This number improved due to some encouraging factors, said the credit union.
These factors included low mortgage interest rates, greater affordability and a
recovering economy. The low interest rates, especially have encouraged many Canadians
to take out mortgages to fund their home purchase.
Central 1 predicts that home sales will see a continued
growth into 2011 and gradually fall off in the latter half of next year as
mortgage interest rates see an upward spike. It also predicts that housing
starts in Ontario
will increase by 9% while apartments’ vacancy rates would remain flat at 3.7%
next year.
Central 1’s expectations are more optimistic than those released
by CMHC (Canada Mortgage and Housing Corp). CMHC forecasts a smaller growth in
sales and expects the average home price to be at $342,600, close to this
year’s level.
