CMHC’s 2009 Second Quarter Forecast

Canada Mortgage and Housing Corporation published the following forecast for the upcoming months:

Growth in house prices will slow as the housing market turns more balanced.

Existing home sales activity will decrease to 357,800 units this year, but will rebound to 386,100 in 2010 as economic activity becomes more positive across Canada.

The Canadian resale market was back into buyers’ market territory by the end of 2008. At present, markets in Canada can be characterized as balanced. For 2009, prices are expected to decrease by 6.8 per cent to $283,100 and remain at that average in 2010.

It was also suggested that, as economic struggle continues, multi-family housing will become more popular. Therefore, CMHC estimates that there will be a “positive growth in the construction of multiple-family units”.

Another benefit that we are experiencing due to the economic conditions is a drop in mortgage rates. The forecast from CMHC expects rates to remain stable throughout the end of 2009 before gradually increasing in 2010.

What does all this mean to prospective home buyers and sellers? While the market is balanced and mortgage rates remain low, now is the perfect time to buy or sell.

Quotes compliments of www.cmhc-schl.gc.ca. Check website for more information.