After having very encouraging numbers for the first seven months of the year our real estate market did cool slightly in August compared to 2011. August 2012 has seen a decrease of listings from 2011 of 8%. Number of sales also decreased from 2011 by 2%. Year to date we are still up in 2012 by 4% from 2011 for sales. The Canadian Real Estate Association (CREA), has now updated the forecast of the Canadian market to reflect some changes in our market conditions.
“Recent changes to mortgage regulations are likely to sideline some potential first-time home buyers, particularly in some of Canada’s priciest housing markets,” said Gregory Klump, CREA’s Chief Economist. “That’s likely to result in slower momentum for resale housing activity, with an increase in the amount of time it takes for move-up buyers to sell their current home. Job growth is widely expected to continue at a modest pace while interest rates remain on hold, so the economic outlook is absent the factors that typically result in forced sales and a dramatic swing in prices.”
I do not see these changes in the market forecasting to make a huge impact in the Peterborough and area market. CREA’s numbers are mostly based on the major cities of our country. I forecast that our market locally will remain balanced and steady with our 2011 sales especially in the residential market. Waterfront properties have been slow to sell but that is expected as the market in Toronto cools.
On another note, and as most of you know that I am a loyal Peterborough Lakers fan. I would like to congratulate the organization on their Mann Cup win last week. It is exciting to have the privilege to watch Canada’s best Lacrosse team win again. Wow, 5 Mann cups in the last 9 years.