The Canadian real estate market saw some encouraging numbers in September, even though the well-regarded "housing starts" numbers dropped from August. However, if looking at a more generalized trend, those the Canadian housing market seems to be ramping up as we head into the final quarter of the year.
The optimism about the Canadian housing market comes from both the resale and new construction markets.
Resale Housing Sector
It is strongly believed that the overwhelming strength in the resale market, where home inventories have shrunk to the lowest levels since the beginning of this year, is unstable and that it will be midway through 2010 before listings start to ramp up again.
New Construction Sector
Although starts were lower in September, the upward trend suggests the Canadian housing market is set to end the year higher than many economists predicted. In fact, most of the strength in this sector has come from single family homes with inventories still a little higher than expected on the condo and multi-level front. The stability and increasing demand in the family homes suggests that the upward trend in this area is sustainable.
The largest turnaround in the Canadian housing market can be found in the West. With construction activity accelerating, it seems the West (which has experienced the greatest volatility) will run the risk of overinflating prices once again.
Canadian Housing Market Prices
As for prices, the Canadian housing market may be a little overpriced or could get there quickly. This statement is based largely on the fact that demand is currently outpacing supply, a fact that is considered to be the result of pent-up demand that saw little activity in the earlier part of the year.
In fact, the inventory of resale homes has now dropped to less than 5 months... In some areas, prices and sales have increased to or beyond levels seen during what is considered to be the "height" of housing boom (2008).
As a Kitchener Real Estate Lifetime group Agent, Shane helps his clients find their ideal home with as little difficulty as possible. As well, he helps his clients sell their homes at the most competitive prices and at the best commission rates, allowing them to draw on the full power of the MLS system.