Real Estate Forecast News - Kelowna

Real Estate forecast


by Contributed - Story: 60362 Castanet.net

Feb 25, 2011 / 5:00 am

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 new forecast, issued February 8th, 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, contact your local Coldwell Banker real estate professional.