Friday, January 8, 2010

Canada's hot housing market to continue through mid-2010

OTTAWA — Canada has moved back into a seller's market and will remain "unusually strong" through the first half of 2010 as economic conditions improve and low interest rates spur demand, according to Royal LePage's Market Survey Forecast and House Price Survey released Thursday.

"The Canadian real estate market enters 2010 with considerable momentum from an unusually strong finish to the previous year," Phil Soper, president and chief executive of Royal LePage Real Estate Services, wrote in a statement. "The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year."

The report comes hard on the heels of several others that show the market continuing to gather steam.

By Julie Fortier, Financial Post January 7, 2010

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