Upcoming 2011/2012 Real Estate Market Outlook by Analyst Paul Fabri, CMHC
By Jaime Briggs, Kelowna Real Estate
September 14th, 2011
I had the pleasure last night of attending the CHBACO (Canadian Home Builders Association of the Central Okanagan) AGM and Dinner. Guest speaker was real estate market expert/analyst, Paul Fabri of CMHC.
Here are the highlights of his talk about what to expect in the remainder of 2011 and into 2012 for the real estate market:
CHBA presentation by Paul Fabri.
- New home contruction starts and recreational housing has slowed down.
- Resale and new condo sales have considerably slowed down.
- Sales to new listings ratio is way down. We are definitely in a strong buyers market
- Home prices have flattened out and will stabilize for the remainder of 2011.
- Resale home market is to remain modest.
- New home sales and construction has definitely declined drastically since 2007.
- Recreational properties and resort homes has also dropped drastically. The world economy, stronger competiton south of the border and higher lending rates have all played a major role in contributing to this.
- There is currently a huge surplus of unoccupied multi family units for sale. This high inventory is definitely affecting sales and prices.
- New home construction right now is trending towards lower priced homes rather than higher end spec homes.
- For 2012 new housing starts for single family homes are projected to have modest growth, multi family housing will target lower priced homes.
- Into 2012 the housing growth will follow the slight increases in the economy growth.
- Interest rates are expected to remain low into 2012, which is good news for the housing economy.
- Into the next year, buyers will continue to benefit from a good supply of homes and strong price competition.
- 2012 should start to bring moderate price increases, while remaining a strong buyers market.
It seems that the forecast will remain a strong buyer's market ~ great news if you are trying to buy! If you are trying to sell, all the more reason to hire a professional real estate agent who can assist you with your sale and make sure that your home is priced and marketted properly for this market!