Canadian Realestate Magazine forum is the place for positive industry interaction and welcomes your professional and informed opinion.

CREA downgrades real estate forecast

Notify me of new replies via email
Guest | 17 Sep 2012, 03:54 PM Agree 0

"While we always caution that housing market trends at the national level can and do run counter to trends in many local markets, the decline in activity in August was definitely the result of much of the country moving in the same direction," sais CREA president Wayne Moen Monday.
In its outlook for the year, CREA now maintains that home will rise by 1.9 per cent to 466,900 units in 2012, but slip by 1.9 per cent to 457,800 units in 2013. The revised outlook is more modest than the 3.8 per cent increase over 2011 CREA predicted in June.
The outlook for the national average home price is forecast to rise 0.6 per cent to $365,000 in 2012, edging lower by 0.1 per cent in 2013.
Sales in August, in fact, fell 5.8 per cent compared with July. The year-over-year slip was even greater, down 8.9 per cent.
The downgrade comes as the Canadian housing market grapples with the effects of tighter mortgage rules introduced by the federal government in July.
The sale of existing Canadian houses and condos has already gone down for five of the past six months.
Analysts are largely singling out Ottawa’s decision to reduce the maximum amortization for government-insured mortgages to 25 years from 30 as the primary culprit responsible for the slowdown.
  • Realtor imran javaid | 18 Sep 2012, 05:43 PM Agree 0
    This was expected and now hopefulluy we will have a healthy and stable market.
  • sudhir sharma | 18 Sep 2012, 06:33 PM Agree 0
    The real estate market is going to be skewed towards richer people and keep the deserving people out.
  • jeff sim | 19 Sep 2012, 02:05 AM Agree 0
    years ago a 25 yr mortgage was all you could get, and we were all used to that, then sometime around turn of the century we got up to 40 yrs.( the feds way of spurring the economy maybe) but in the last 2 yrs it has slipped back down to 25. aA pretty dramatic shift in a short period of time time.

    that much of a reduction in the amortization peroid definitly will have an adverse on anyone just starting out or even their first move up. The feds wanted to slow or prevent a so called bubble, when they do not even know if we were in a bubble, and although some centers might be experiancing uninhibited price increases many areas are exactly the opposite.

    unfortunately a gov't decision to arbitrarily slow the Real Estate housing market, will also slow the rest of the economy at a time when many would say it was dead stopped anyway, or just barely recovering.

    many things will contribute to the national economy recovering, if people buying houses were what was leading the charge to economic recovery then the wheels just came off, and they didn't just fall off, like the car in your driveway after the party next door, they were ripped off.

    just my slanted thoughts
Post a reply