February 8, 2011
The Canadian Real Estate Association has revised its forecast for housing sales in 2011.
According to the Financial Post:
Sales in 2011 are expected to total 439,900 units, which is still down 1.6% from 2010, the industry group said Tuesday. However, it forecasts sales to rise 3% to 453,300 units in 2012 — in line with the 10-year average.
So basically tons of people bought homes in 2010. Hence, fewer people are going to buy in 2011. Makes sense to me. It seems that many home buyers have pushed their purchase date forward.
Maybe it’s because people don’t think mortgage rates can possibly stay this low, maybe it’s because nervous purchasers saw the cost of ownership rising and thought they might be priced out of the market soon enough.
The reason for CREA’s upward revision is that the economy is looking rosier than previously projected. Plus, consumers are going to be more confident– so they won’t be as nervous to take the plunge and buy a home.
Thanks for the update CREA. Always appreciated.