2012 will continue to be steady with new home condo sales in the downtown core leading the charge..
2012 FACTORS TO CONSIDER:• Interest rates remain constant. This is in writing not thought.
• Future demand. For condos, the impact of ‘baby boomers’ and their children along with immigration will be more than enough to fuel steady growth and eventually the artificial inflation or increase in value.
• For the Pre-Construction Market, there is much catching up to do. Re-Sale had enjoyed the majority of price increase in 2011 closing the gap on New Home Sales. This year expect the opposite, while re-sale will continue with its healthy growth, we cannot compare 5-10 year old projects with the future value on Brand New.
• Rental rates should increase more this year than in the past 10 years due to the lifting of restrictions and what looks to be the largest population increase for 2012.
2012 FORECAST :
• Price for Real Estate should remain constant if not commence the trend to artificial increases.
• For the Resale Condo Market, sales volume will be up and prices will be flat in 2012.
• For the Pre-Construction Market, watch for the increase to be sharp in the downtown core as fewer infill sites become available.
• Larger units will be in more demand as our maturing condo user will be moving up.
• Rental rates will increase and Vacancy rates will remain below 1%.