My crystal ball has been useless for years, so let’s consider what the “Experts” thought would be the trends for 2016. I have sorted through quite a few predictions for 2016, and here are the common themes…
Prediction #1 – High demand coupled with limited supply will continue to support the strong Toronto and Vancouver markets. Virtually the rest of the country is now balanced so expect only modest price increases, while the markets that are oil dependant will see more price reductions and a smaller number of transactions, which will push average prices down.”
A bit of hit and miss on this one… Toronto and Vancouver markets definitely have been strong, leading up to the BC tax on foreign investors. Vancouver may be cooling, but Toronto seems to be picking up the slack. As for the rest of the country, many markets are seeing record breaking price increases, Hamilton for example, but oil dependent Alberta has experienced reductions.
Prediction#2 – “Since mortgage rates are so tied to inflation, there’s a good chance rates will stay rock bottom in 2016.”
They were right on this one… The rate has not changed and it is expected that it will remain steady throughout the balance of the year.
Prediction #3 – “The BoC expects the economy to strengthen and for borrowing rates to begin to normalize, which will help keep the housing market and household indebtedness stable”
The housing market is going strong, but recent reports on household debt indicate that consumers are spending themselves into a deep hole…
Prediction #4 – “In the vast majority of Canadian housing markets, this year will present buyers with the opportunity of time…it gives the buyer an opportunity to shop around to find something that best suits their needs.”
In the local market, they definitely missed on this one. This year had been one of the toughest markets in a long time to be successful in buying a home in the Hamilton/Burlington area. Competing offers has been the “norm” in our market with many buyers offering on 5 or more homes before being successful.
Prediction #5 – “In most markets in Canada, sellers will have to adjust to a slower market where multiple offers are no longer the norm.”
They missed on this one…
Prediction #6 – There will not be a housing crash in 2016
So far, so good. There are no clouds on the horizon indicating that the experts were wrong on this one.
In looking at the predictions, I guess the “experts” need to do a little polishing on their crystal balls before publishing their 2017 predictions.
Keep in mind that real estate markets are very local in nature. To find out exactly what is happening in your area, call one of our professionals.
At Coldwell Banker Community Professionals we don’t strive to be the biggest but we do strive to be the best.