Yesterday the Canadian Real Estate Association (CREA) announced a revised and extended Real Estate forecast for 2011 into 2012. Since the market rebounded more quickly than expected in the second half of 2010 CREA has revised their Real Estate market forecast for 2011. Recent improvements in the consensus economic outlook as well as an expected improvement in consumer confidence are the main reasons for the upward revision. Both sales activity and average prices are forecasted to rise.

National sales activity is expected to now reach around 439,900 units, with 82% of that activity occurring in Ontario (185,500 units). Sales activity is expected to remain optimistic into 2012 as well with Ontario forecasted to have a 1.3% increase in sales activity in 2012 over 2011. 

National average home prices are forecasted to rise to $343,300 in 2011, an increase of 1.3% that is expected to carry from 2011 into 2012. In most provinces, because of a healthy balance between the supply of and demand for homes listed for sale, the average price is expected to rise modestly. The average price in Ontario is expected to increase by 0.6% from $342,245 in 2010 to $344,400 in 2011.  

Playing a role in the expansion of the forecast is the recently announced changes to Canada's mortgage regulations. The changes are expected to do two things: (1) bring some sales forward into the first quarter of 2011 and (2) help to ensure that buyers don't buy more home than they can afford when interest rates eventually do rise. The new regulations will work to strengthen the Real Estate market and stabilize home prices. 

With the ever changing Real Estate market and differences from city to city, CREA recommends that buyers and sellers consult their local REALTOR® for the most up to date information in their area. I'm always available to discuss the trends and conditions in the Barrie Real Estate market, as well as those of the surrounding areas. Feel free to pass this information along to friends and family who may find it relevant. For more information about Real Estate in Barrie please don't hesitate to contact me.

Sincerely,

Peggy Hill

Broker of Record

Peggy Hill & Associates Realty Inc., Brokerage

www.PeggyHill.com

Peggy@PeggyHill.com

Office: (705) 739-4455

Direct: (705) 796-8191