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Real estate industry insiders have long known that new construction is one of the best indicators of coming market conditions. According to The Canada Mortgage and Housing Corporation (CMHC), we’ve just come out of a near record year, with strong market conditions continuing for 2008. Annual housing starts for 2007 are estimated at 229,600, surpassing 2006 construction levels and reaching their second highest level in nearly two decades, says CMHC.
Although there was a slight cooling of the housing market in December, Canadians should not assume this monthly dip signals a new trend. After two strong months in October and November, both multiple and single-detached home starts did fall in December, but according to CMHC this was mainly due to harsh winter weather across many areas of the country. The ‘big picture’ which should interest Canadian home buyers and sellers is what is driving the market. The conditions that will support strong housing demand are firmly in place here in Canada. The market is expected to remain strong this year due to low mortgage rates, strong economic and employment performance, as well as high consumer confidence. And those driving factors all add up to another great year!
According to CMHC, housing starts are expected to remain strong in 2008, but are forecast to decrease to 214,300 units. That may be slightly below the sizzling pace set by the 2007 market, but it’s still a very active year any way you look at it. And what does this mean for Canadian consumers? Well, a lot depends on whether you’re buyer or a seller. The majority of markets are still expected to favour the seller in 2008. Of course, that’s just the national trend. For more specific information about what’s in store for your local market in the year ahead, contact your local Coldwell Banker® sales representative Maureen Reed and take advantage of the helpful advice. Contact: office 416-231-5000 or direct at 416-895-4883, www.resalehomes.name.
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