Saturday, 7 April 2007
Real Estate Crystal Ball
It is now April and there is uncertainty in the real estate market as always. Will prices keep rising and what will happen to interest rates? These are still the main questions. I believe prices in Ontario will rise a little with location being the cause for bigger than average increases. Some areas which are more trendy than others have seen bigger than average price increases in the past two years. Those prices should continue to rise and as they become less affordable neighbouring areas are likely to move as well. The Canadian economy is strong no and there appear to be no impending serious problems so the market should be stable. Interest rates continue to be low but now it is not clear if they will go up or down this year. Lower rates were predicted but did not happen yet and the signals for rates are beginning to conflict. I do not expect much movement either way so that should not have a big impact on the market. Energy costs are a bigger factor than ever and I believe energy efficient homes will sell at a premium. I see the condominium market slowing a little with fewer new projects but that is probably a good thing as there have been too many new condos on the market. As a lifestyle condominiums are becoming more popular and so the resale condo market in newer, well located and energy efficient buildings should get stronger. It looks like a good time to buy or sell.