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Paul Bale
Orca Realty
#201 3997 Henning Drive, Burnaby, BC
P: 778-251-8176
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Tuesday, March 2, 2010 - Sales will Rise

CREA President Dale Ripplinger reports that housing sales in Canada, led by British Columbia, will rise sharply to a new record high during the first half of 2010 before higher interest rates and the harmonized sales tax kick in. CREA forecasts national activity will reach 527,300 units in 2010, up 13.3% from 2009. This would represent a new annual record, standing 1.2% above the previous peak in 2007. Low interest rates are ecpected to boost housing demand in the first half of the year, resulting in strong annual sales growth in nearly all provinces in 2010, especially B.C. Over the second half of the year, sales activity is expected to trend downward as the last of pent-up demand is exhausted, interest rates begin rising, and the HST comes into effect. The HST will increase taxes on a number of items related to home sales, including agent commissions, legal fees, and other closing costs. It will also increase taxation on most new homes sold in the province. National home sales activity is forecast to decline 7.1% to 490,100 units in 2011, putiing it on par with annual levels reported in 2005 and 2006. I believe interest rates will rise as mentioned earlier, however, they will still be low enough to keep affordability within reach for many homebuyers. That means all you out there renting, Peace for now, hopefully that was helpful.
posted in News at Tue, 02 Mar 2010 20:55:20 +0000



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