SMI Brokers Expert Answers Some Burning Questions
On 11th March, 2013, TD Economics, one of the largest financial institutes in Canada, presented its special report, titled ‘Long-Run Rate of Return for Canadian Home Prices.’ In the report, TD listed Calgary, Vancouver, Toronto and Edmonton as prospective out-performers in the future real estate scene. Marcus Arkan, CTO Syndicate Mortgages, recently presented his analysis of TD’s report on the future of various markets.
According to the report, house prices in Canada are expected to remain flat for the upcoming decade. TD’s lead economists, including Craig Alexander and Derek Burleton, also forecasted a downward trend and market adjustment over the next three years. The report states that annual price gain and rate of gain will be around 2 percent over the next decade. However, the report has clearly listed markets that are likely to out-perform in the future. Calgary, currently one of the hottest markets in Canada, is also one of the prospective out-performers on TD’s list.
Mr. Arkan agrees with TD’s forecast regarding Calgary and stated that there are numerous reasons why Calgary will continue to perform at above par levels. He stated, “Real estate market goes through cycles. There has been plenty of price correction and adjustment in Calgary. It is currently one of the most affordable and least overvalued markets in comparison to other major metropolitans.”
According to the Calgary Real Estate Board, the average sales price of MLS in Calgary peaked in 2007 at $423,770. In 2009, the prices experienced a significant drop at $394,064 in 2009. In 2012, MLS sales prices reached an all time high at $428,644.
Mr. Arkan further added that the underlying economy of the region will play a far more significant role than foreign investments in the area. “Average income in the region is higher and plenty of people are migrating to Calgary. Canada mortgage rates have also remained favorable. The sales and demand will both continue to rise in the city.”
TD Economics’ report also presented the list of markets that are expected to perform at par with national average and also the ones that are expected to underperform. Halifax and Saint John are specified as prospective under-performers.
You can learn more about Canada housing market and Canada mortgage rate at http://www.syndicatemortgages.com/