Market Watch - September 2009
With summer coming to a close, it is a good time to reflect on the local resale market. August numbers continued the positive trend set in July with sales and average prices up, year over year. 2009 has thus far continued to surprise market watchers.
"We are seeing an upward revision of our housing market forecasts at the national level," says Bonnie Wegerich, President of the Calgary Real Estate Board. "I think it is fair to say the recovery in the market has been a little brisker than first expected-and all signs indicate the rebound, all be it gradual, will have some longevity."
The increase in demand for existing homes has been widespread across different housing types and price ranges. This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a lifestyle change.
"We have heard more positive economic news lately. The improved housing market has played a key role," explained Jason Mercer, TREB's Senior Manager of Market Analysis. "Home sales have helped other sectors of the economy through home buyers' spending on things like financial and legal services, moving, renovations and home furnishings.
Low mortgage rates, government incentives and realistic pricing on the part of sellers are contributing to healthy sales numbers-as is the recent boost in consumer confidence on news that the worst of the economic slowdown is over.
"After 12 months of significant volatility in the housing market, greater stability is expected through 2010," said Cameron Muir, BCREA (British Columbia Real Estate Association) Chief Economist. "Robust housing demand is a strong signal that the economy is coming out of the recession, with a recovery in the broader economy expected to develop over the next three quarters."
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