As per my prior postings, real estate activity in the Georgian Triangle has gotten off to a brisk start for 2012 in most municipalities of the region and seemingly we are not alone. The Canadian Real Estate Association (CREA) has updated its quarterly forecast for home sales activity in 2012 as reported through the various Multiple Listing Service® (MLS®) Systems of real estate Boards and Associations across the country. Further they have extended their updated forecast into 2013 and overall the outlook is a positive one.  National home sales activity for 2012 and 2013 is projected to remain roughly on par with the 10 year average for annual sales as interest rates remain low and further economic and job
growth continues to drive Canada’s housing market.
  National resale housing activity through Canada’s various MLS® systems is predicted to reach 458,800 individual units in 2012. This represents an annual increase of 0.3% compared to the 457,305 sales in reported in 2011. Alberta, Saskatchewan, and Nova Scotia traditionally thought of as the have-not provinces are expected to see stronger real estate sales activity which will in turn offset slower market activity in British Columbia, Ontario and New Brunswick. “The continuation of low interest rates is good news for housing and for the economy,” said Gary Morse, CREA’s President. “Local housing market outlooks differ according to their respective economic prospects, so buyers and sellers should talk to their local REALTOR® to better understand housing market prospects in their area.”
  In 2013, national sales are forecast to slow with reduced overall sales of 457,200 units. Modest gains are forecast for all provinces as economic and job growth gains momentum later this year and increases into 2013. The one exception is here in Ontario where the market is expected to weaken no doubt somewhat the result of the weakened manufacturing sector. What this means for the Georgian Triangle in 2013 remains to be seen. To a large extent our market is a discretionary one with a significant number of our annual MLS® sales being secondary properties for recreational use. A tightening of Ontario’s economy could bring about a reduction in area condo, cottage and chalet sales as buyers second guess whether they should proceed with a property purchase they ultimately do not need to make.
“CREA’s updated housing market forecast reflects recent & prospective trends for provincial home sales activity coupled with prevailing provincial economic outlooks,” said Gregory Klump,
CREA’s Chief Economist. “Risks to the Canadian economic outlook remain elevated owing to the
European sovereign debt quagmire, but the continuation of low interest rates is the silver lining.
So long as the European debt crisis is contained and a global economic recession avoided, low
interest rates will support Canadian home sales and prices. Recent trends are reassuring, but
interest rates remaining low for longer will doubtless keep the Canadian housing market under
scrutiny for signs of overheating.”