Australia’s market red hot, while Ireland hits the skids
Canada’s housing market was among only six in advanced nations that posted growth in 2010, according to the latest Global Real Estate Trends report issued by Scotia Economics.
But while the Canadian home market was among the best performing, it was also one of the most volatile, the report notes.
Home sales were unusually active during the winter and spring, but dropped off substantially during the summer, according to the report. It says that over the fall, sales returned to a more typical level.
“We are neither overtly optimistic nor pessimistic regarding the outlook for 2011,” said Adrienne Warren, a senior economist with Scotia Economics.
She expects interest rates to remain low well into 2011, providing an inducement for first-time and move-up buyers, which will keep sales at a decent level.
However modest employment and income growth is expected to restrain the market somewhat.
“Overall, we anticipate a fairly lacklustre year for residential housing, with modestly higher sales volumes and flat inflation-adjusted prices,” Warren said. “The bigger risk likely awaits in 2012, when more significant interest rate increases, combined with record-high home prices, will notably strain affordability.”
Published by: CBC News
Date: December 23, 2010