Continued economic difficulties south of the border which triggered this weeks turmoil in the stock market, has many consumers somewhat apprehensive about our economic and real estate outlook for the year ahead. Canada's economy continues to show considerable strength quelling fears that the real estate "bubble" is about to burst. Continued strength in the Canada dollar is continuing to drive a strong sense of consumer confidence which will translate into further consumer spending. Employment levels across the entire country remain at very high levels driven by several segments of our economy including natural resources and the overall service sector. Interest rates continue to remain attractive which will bode well for first-time home buyers this year.
After an exceptionally strong real estate market in 2007 which saw average gains in pricing and record high unit sales in most markets across Canada, 2008 is expected to deliver steady yet moderate growth. The national average residential price is forecasted to rise by 3.5% this year to just over $317,000. As mentioned in a prior posting, unit sales are anticipated to decline slightly from 2007's record high to forecasted residential property sales for 2008 totalling 500,927 units. Despite the anticipated reduction in unit sales this year, it is expected total residential sales for 2008 will exceed that of any year prior to 2007.
For a complete summary of forecasted 2008 sales activity by Royal LePage Canada, please click on the following link:
http://www.royallepage.ca/CMSTemplates/AboutUs/Company/CompanyTemplate.aspx?id=1684
In my next posting I will provide my personal outlook for the local real estate market in 2008.
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