Real estate forecast for 2011 revised upward
Resale homes sold more quickly in February
Real Estate forecast for 2011 revised upward…Sales expected to rebound in 2012; prices continue to rise.
There are good things on the horizon for the Canadian real estate market. At least, so say the latest industry forecasts, which have just been revised upward. The Canadian Real Estate Association (CREA) has just boosted its 2011 national forecast for MLS® sales. What’s more, CREA has now also issued a very positive forecast for 2012.
The forecast, issued in February, represents an upward revision to CREA’s earlier national forecast for 2011. National MLS® sales activity is now expected to reach 439,900 units in 2011. This solid showing represents only a modest annual decline in the number of transactions of 1.6% below the previous year's active pace. In 2012, CREA forecasts that national sales activity will rebound by 3% to 453,300 units (which is roughly on par with the ten-year average for resale homes trading hands in Canada). CREA cites recent improvements in economic outlook, along with further expected improvement in consumer confidence as reasons for the upward forecast.
There’s good news for homeowners and home sellers too, as property values are expected to continue their upward climb, although at a much more moderate pace. According to CREA, the national average home price is expected to rise 1.3% in both 2011 and 2012, to $343,300 and $347,900 respectively. The average price is expected to rise modestly in most provinces, reflecting the continuation of a healthy balance between supply of, and demand for, homes listed for sale.
Of course, this is just an overview of the national picture. Home prices can vary dramatically between communities, within neighbourhoods, and even on the same street. For a more detailed look at home sale activity and resale prices in your area, please give me a call or e-mail.
Resale homes sold more quickly in February
Members of the Ottawa Real Estate Board sold 936 residential properties in February through the Board's Multiple Listing Service® system compared with 1,030 in February 2010, a decrease of 9.1 per cent.
Of those sales, 213 were in the condominium property class, while 723 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.
"Once again we're seeing sales numbers very close to the five-year average for February, which is 962 sales. It's important to note that the homes that sold last month did so far more quickly than in January, spending an average of just 33 days on the market. As well, prices rose slightly more than they had in the previous two months which indicate we still have a very steady market here in Ottawa," said Board President Joanne Tibbles. "This tells us that there is a demand for resale homes in Ottawa, and that when buyers see the home they want, they're going after it, perhaps even going up against other bidders," Tibbles added.
The average sale price of residential properties, including condominiums, sold in February in the Ottawa area was $3Resale homes sold more quickly in February38,408, an increase of 6.7 per cent over February 2010. The average sale price for a condominium-class property was $260,112, an increase of 6 per cent over February 2010. The average sale price of a residential-class property was $361,475, an increase of 6.9 per cent over February 2010. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.
Resale homes sold more quickly in February
