Alberta has lead housing sales in Canada for 2012, and Calgary is projected to be the hottest investment city for the next three years as per the Real Estate Investment Network (REIN) research.
However, housing prices fell in 10 out of 11 major markets for the first time since 2009, which speaks to Toronto’s condo market, having seen a 16% dip in sales and a 38% decline for the sales of detached, semi-detached and townhouses from 2011. Sales have fallen drastically for Vancouver dropping 29%, but sellers are holding close to their price or electing to take the property off the market.
The new mortgage rules implemented in the summer are having an impact on the First-time home buyers who are being pressured out of all markets across Canada. However, if prices start to dip, we might see First Time Home Buyers gain momentum while interest rates remain low. Rates are expected to stay low throughout 2013 with only marginal increases nearing the later part of the year.
Canada’s exports are not faring well, and our Q3 growth numbers were disappointing, but we are expected to rebound with 2013 forecasts of 2.3% and 2% growth by The Bank of Canada and the Finance Department respectively.
While there is still uncertainty with local market conditions and challenges facing many of our global partners, 2013 is projected to heed positive results. A necessary housing price adjustment, low interest rates, increase in growth and exports, and stable employment should keep Canada’s economy moving forward while reorganization is endured globally.