While the growth of the resale market during the year 2010 has been surprisingly fast-paced so far, we will experience slow-down towards the end of the year and overall worse results during 2011, at least according to recent report prepared for Canadian Association of Accredited Mortgage Professionals.
They believe that the current demand is sustained mainly by the jobs created prior to the recession, by the record low interest rate and finally due to the recent announcement of tightened mortgage lending criteria, which caused demand shift in favour of this spring. All these factors will probably fade away in upcoming months.
Referencing recent reports from CMHC and CREA, sales are predicted to reach 507,000 in 2010, but only 480,000 in 2011, with minimal price growth from $339,000 to $339,500.That means sales volume will drop from $172 billion in 2010 to $163 billion in 2011.
Complete spring survey can be found on the official homepage.