With 2010 behind us....well kinda behind us.
To be fair were going into 2011 with much of 2010.
In 2010:
Goverment kept rates at emergency lows
Gvt introduced HST on new home purchases
Gvt made mortgage rules tighter so that it was more difficult to get a mortgage
Gvt offered no home tax credits
Net Result:
After a 20 percent leap in prices post 2008 recession in 09, prices continued to grow in 2010 more modestly.
Inventories for back half of year were down in many neighborhoods
Canadian household debt hits damn near 150% of income (thats very high)
So...what's in store for 2011??
Canada not really in position with dollar at par to increase interest rates to further strengthen dollar and cripple manufacturing so tough talk is that there may be further mortgage crunching to make even more difficult to get a mortgage
Inventory always increases in the summer months
Ford may tackle second land transfer tax
Once stimulus wears off in US so long as employment doesnt go up, rates should go up and as rates go up, typically fixed rates on mortgages increase
It really will boil down to supply and demand. How many ppl will list their homes. Theres always a ready supply of buyers. If buyers with good credit are out and sellers are scarce then prices will moderate.
530 pm BNN is going to make an arguement about the success of the 2011 real estate market. I will be tuned in.
Happy New Year to all.
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Michael -
http://www.TheSmithsBuyAHouse.com
mgruenstein@trebnet.com
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