Modest Real Estate Gains Seen Globally in 2010

As the year draws to a close, many Canadians are looking at 2011 with a degree of cautious optimism.  Scotiabank recently released a Global Real Estate Trends report wherein they tracked housing markets in 12 advanced economies throughout 2010. The overall summary of the report report stated that global residential property markets “experienced a modest but uneven recovery in 2010, supported by ultra-low interest rates and gradually improving economic conditions” but “lost some steam in the latter half of the year”.
  This was certainly very true in our market as well as in most parts of Canada.  We experienced strong sales activity in the first six months of the year with many buyers electing to purchase prior to the implementation of HST in Ontario and or amongst fears that mortgage rates would increase significantly.  At the end of June unit sales in the Georgian Triangle were up 28%, by the end of November that increase had slipped to just a 4% increase. 
  Sales in December have already surpassed December of last year so by year end we will no doubt see a year-over-year unit sales gain of 4% to 5% in terms of properties sold.  Sales revenue on the other hand will be up 10% to 12% thanks to increased sales activity at the upper end of the market.  To date we have seen 23 sales in 2010 over $1 million, more than twice the number of $1 million+ properties sold in 2009.  In 2010 there have been 4 sales over $2 million last year there were none.
It's anybody's guess as to what 2011 will bring, the overlook would suggest we are in for continued albeit modest economic growth including the real estate sector. The U.S. is still struggling with their economic recovery efforts although the auto sector seems to be turning the corner with stronger sales and a plethora of exciting new vehicles coming to market.  Like it or not, this season's early and abundant snowfall has been a great boost to the local economy.  As the saying goes, "an ill wind always blows someone some good."
Please take a moment to complete my online survey regarding your thought for our economy in 2011, whether it be good, bad or indifferent.