Market Watch Spring Starts in February!
In real estate, spring starts very early. Instead of waiting for April showers and May flowers, housing markets come back to life after the holiday.
That's especially true in 2010 - listings are sprouting at a rapid pace and buyers are eating them up.
There are a few contributing factors: Low-as-possible interest rates are still driving the market. Buyers know a good deal when it's in the form of a 4% interest rate.
The flip-side fear of higher interest rates. The Bank of Canada has hinted about a small increase in the second half of the year
HST fears are adding pressure as the July impementation date approaches. Both buyers and sellers - even of resale properties - will be affected.
None of these factors are likely to have a huge impact on the market this year. But the market is sensitive, and even small external pressures have an affect. The really good news is that with motivated buyers and sellers the result is a more balanced market. Toronto Real Estate Board's senior market analyst concurs: “The big story in 2010 will be listings. Homes available for sale were in short supply during much of 2009. As home owners react to strong sales and price increases seen in 2009, listings will increase over the next year. With more choice in the market, annual average price growth should moderate into the single digits,” says Jason Mercer.
Real estate spring is in the air - enjoy!
Mark Gaudet
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