May Market Update – Home sales drop, but prices remain high!

Canada’s real estate market is recovering, though it’s not all the way back, according to the Canadian Real Estate Association (CREA). But don’t expect falling sales to be reflected in the price you pay. CREA notes that, in spite of fewer homes changing hands, Canada’s average house price will rise four per cent to $352,500 per unit this year, and should jump to nearly $356,000 in 2012.

2011 avg. price forecast: $348,100
Change from previous year: + 1.7%

2012 avg. price forecast: $348,000
Change from previous year: 0.0%

For all that’s made about over-inflated Toronto home prices, Ontario’s housing is only the third-most expensive in Canada (after BC and Alberta). After ballooning in average price by 7.5 per cent last year compared to 2009, Ontario is the only province in Canada where prices are actually expected to decrease in 2012. Before you all go out and jump off a bridge, please understand that the market took a huge jump in 09 and it is now correcting itself. The decrease will be small (if in fact it does decrease) and property is still reaping the benefits of the huge value increase in 09.

If you are interested in seeing what prices are doing in your neighbourhood, please call me today for a FREE ‘over the phone’ OR ‘over the NET’ market analysis. I would be happy to let you know what houses have sold for in your neighbourhood.

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