It wasn’t magic, or smoke and mirror, but the Canadian Real Estate market “defied conventional logic and outperformed expectations in 2011, posting another solid year of housing activity virtually across the board.”
According to RE/MAX, they expect the show will continue in much the same way through 2012, despite continued uncertainty brewing in global markets.
The RE/MAX Housing Market Outlook 2012 looked at 26 different markets across the country, and determined that in 88% of them, price increases were expected by the end of 2011, ranging from 1% to 16%. While activity is expected to moderate somewhat through 2012, there is still a belief that it will outpace 2011.
RE/MAX said in their report, “Overall home sales are expected to remain on par or ahead of last year's levels in 85 per cent (22/26) of markets in 2011—including Saskatoon with a year-over-year percentage increase of 13 per cent and an eight per cent uptick in Calgary, Winnipeg, Hamilton-Burlington and Sudbury. Almost half of Canadian markets will match the 2011 performance, while the remainder should post increases ranging from one to five per cent next year.”
Looking at prices, they expect the average price in this country to have climbed by 7% by the end of 2011 from the year prior. They forecast another 2% hike through 2012.
"What 2011 proves is that real estate continues to have momentum," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further. Nationally, we remain on an upward track, and the confidence consumers have demonstrated in housing over the past decade will prove well founded once again next year. The rising belief in homeownership is key, especially among Generation X and Y—some of whom are making their moves sooner. Boomers and retirees are changing, too. They're healthier and more active, with longer life expectancy. Overall, we're seeing an extension of the homeownership cycle, and its great news for housing going forward."
“Canadian consumers are intent on making their moves now, in advance of higher housing values," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Housing markets are not impervious to the impact of economic concerns moving forward, but real estate has proven its resilience time and again—2011 was case in point, as residential real estate markets actually experienced an upswing in the volatile third and final quarters, instead of responding to economic concerns both here and abroad with a retreat in sales and prices."
Seemingly, despite headwinds that continue to blow ferociously against our borders, the Canadian Real Estate market, while not immune, continues to move forward. Many attribute this inner fortitude to sound domestic economic fundamentals- many of which are taking place at the local and provincial levels, as well as stringent lending policies to reduce risk of consumer vulnerability in regards to mortgage debt.