Canada's residential real estate market is forecasted to remain unusually strong through the first half of 2010, but dip in the second half, according to the Jan. 7 Royal LePage Market Survey Forecast and House Price Survey.
As economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, increases in average house price levels and overall market activity are expected to continue.
However, the gradual erosion of affordability driven by higher house prices and the expected late-year modest upward movement in interest rates are expected to bring the market back into balance in the second half of the year. Increases in home prices are expected to moderate as supply becomes more available and confidence surrounding the economy improves.
In contrast to the difficult months during the worst of the recession, house prices appreciated during the later part of 2009, with fourth quarter price averages surpassing averages from the fourth quarter 2008.
The average price of detached bungalows rose to $315,055 (up 6 per cent), the price of standard two-storey homes rose to $353,026 (up 5.2 per cent), and the price of a standard condominium rose to $205,756 (up 6.4 per cent).
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