Record High For Edmonton’s Real Estate Prices
According to The Edmonton Journal, February 9, 2010:
“Canadian real estate sales and prices are poised to set records this year, according to a new forecast that’s bound to reignite calls in some quarters for tighter lending rules.
The Canadian Real Estate Association, which represents 100 boards across the country, said Monday it expects existing home sales to reach 527,300, a 13.3 per-cent increase from a year ago and 1.2 per-cent increase from the record set in 2007.
Bank of Canada Governor Mark Carney has warned about rising household debt, which is reaching record levels. Finance Minister Jim Flaherty has suggested he’s prepared to tighten mortgage requirements and continues to monitor the market.
“One of the legitimate concerns of the finance minister might be if you make qualifying for mortgage default insurance prematurely restrictive that it will quell housing activity even as erosion in affordability continues,” said Gregory Klump, chief economist with CREA.
There have been rumblings that the government is considering rules that would require buyers who need mortgage insurance to have at least 10 per cent down over 25 years instead of the current 35 years. Buyer’s with less than 20-per-cent downpayment must get mortgage insurance, if they’re borrowing from a financial institution governed by the Bank Act.
Klump’s group believes the market is going to correct on its own in the second half of 2010. CREA has called for sales to drop by 7.1 per cent in 2011. The group says that while prices will rise by 5.4 per cent in 2010, to an all time high of $337,500, they will drop by 1.5 per-cent in 2011.
Some economists agree price increases will shrink once interest rates rise and inventory levels increase.”
In my opinion, this is a very exciting time again for the Edmonton real estate market. I am seeing multiple offers due to the edmonton’s home inventory being so low. I personally was not expecting to see these market trends until very early or late spring.
One comment I typically hear from potential clients is “Should I wait until the Spring to put my house on the market?”. In most cases the spring market is considered the ideal time to list your house, but not now. If your planning on selling, do not wait! Putting your house on the market sooner rather than later is the best decision that you can make. To find out what your home is worth, give me a call today at 780-457-4777 or fill out our online form at: www.paranych.com
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