Sun
Housing resales and prices will rise to annual records in 2010, surging to 527,300 units, the Canadian Real Estate Association said Monday.
The gain would represent a 13.3-per-cent advance from 2009, and surpass by 1.2 per cent the previous peak in housing resales in 2007, the realtors group said.
B.C. and Ontario are expected to lead, boosted by low interest rates and buyers motivated to avoid the harmonized sales tax that will come into effect in those two provinces in July.
First-half activity is expected to remain strong, although the group expects national activity to trend lower as the last of pent-up demand is exhausted, borrowing costs rise and new tax regimes come into effect.
That slower pace will extend into 2011, as rising rates will continue to dampen activity. CREA now forecasts the level of sales in 2011 will drop 7.1 per cent to 490,100 units.
Prices will also hit a new record in 2010. The national average home price will climb 5.4 per cent during the year to $337,500, partially because of the rebound in activity in Canada’s priciest markets, particularly B.C. and Ontario, CREA said.
Average prices are expected to advance in every province, but will then ease 1.5 per cent in 2011.
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