Thursday, December 23, 2010

Scotiabank Year-end Review and Outlook for Global Real Estate...Australia's Still Hot, Canada Not So Much

TORONTO, Dec. 23 /CNW/ - Global residential property markets experienced a modest but uneven recovery in 2010, supported by ultra-low interest rates and gradually improving economic conditions, according to the latest Global Real Estate Trends report released today from Scotia Economics.

.... Canada had one of the better performing housing markets among advanced nations in 2010, though also one of the most volatile. An unusually active winter and spring, prompted by pent-up demand, expectations of rising interest rates that only partially materialized, the looming transition to a Harmonized Sales Tax (HST) in Ontario and British Columbia, and pending changes in lending qualifying criteria, gave way to an unusually soft summer.

Over the fall, sales have returned to a more typical, sustainable level.

"We are neither overtly optimistic nor pessimistic regarding the outlook for 2011," stated Ms. Warren. "On the one hand, we expect interest rates to remain at historically low levels, with the Bank of Canada deferring any further rate hikes to late 2011 given an uncertain global economic outlook and subdued inflation, and longer-term borrowing costs drifting up only modestly.

Source: Canadian Business Online
Dec 23, 2010 - 06:45 EST

Click here to read the entire article...