According to the latest forecast from Scotia Economics, Canada's real estate markets should remain heated through the spring, due to low mortgage rates before setting into more subdued conditions as those rates rise.
Scotia Economic senior economist Adrienne Warren said the last decade had been the strongest decade of real price appreciation in at least 50 years, well in fact it was an exceptional decade.
However, listing of new properties have not kept pace with this surge in buying, and the result is bidding wars for properties.
Warren said Metro Vancouver saw an equally sharp bounce back after a sharp fall-off in sales and prices during the recession.
Metro Vancouver showed an average home price of $592,441 in 2009 which was negligibly lower that the $593,767 average price of 2008.
The Metro Vancouver market does tend to retain high prices because of its unique geographic constraint, which makes the region the least affordable market (in Canada) as well,Warren said, also she forecasts Canada will see a "normal adjustment period," that property prices remain relatively flat for a significant period while other aspects of economy improve.
Scotia Economic senior economist Adrienne Warren said the last decade had been the strongest decade of real price appreciation in at least 50 years, well in fact it was an exceptional decade.
However, listing of new properties have not kept pace with this surge in buying, and the result is bidding wars for properties.
Warren said Metro Vancouver saw an equally sharp bounce back after a sharp fall-off in sales and prices during the recession.
Metro Vancouver showed an average home price of $592,441 in 2009 which was negligibly lower that the $593,767 average price of 2008.
The Metro Vancouver market does tend to retain high prices because of its unique geographic constraint, which makes the region the least affordable market (in Canada) as well,Warren said, also she forecasts Canada will see a "normal adjustment period," that property prices remain relatively flat for a significant period while other aspects of economy improve.
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http://www.leaderpost.com/technology/Real+estate+markets+should+become+more+subdued+after+spring/2718203/story.html
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