2010 Forecast: Record Breaking Sales
The Canadian Real Estate Association (CREA) has announced that it expects existing-home sales to surpass the record set in 2007. In addition, according to Canada Mortgage and Housing Corporation (CHMC), the new-home market is starting to pick up steam.
With interest rates expected to stay low until at least mid-2010, there is still a lot of urgency for potential homebuyers to get into the market. In addition to the low interest rates, the pressure to buy a home now is heightened by the incoming harmonized sales tax (HST) that will affect those residing in Ontario and British Columbia. The HST will potentially add a few thousand dollars to the home buying transaction.
According to Gregory Klump, chief economist with CREA, these factors are likely responsible for current higher levels of activity in Ontario and British Columbia, after all, “what’s more Canadian than avoiding taxes”?.
