It’s been said that a weatherman is the only person that can be wrong, do his job badly and still keep it. Trendspotters in the real estate market could be in the same category. With all the gadgets and gizmos, I keep hoping that the weather predictions will get better, especially for my hurricane-season Florida trip. Throwing humans into the mix to predict what is going to happen next in the real estate market, might be a job for Nostrodamas.
What do the experts at CMHC say is going on in the real estate market:
How did CMHC do last year at predicting this year’s market?
I’m not sure if any of the trendspotters are looking to be weathermen, they could look into it.
In their Fall 2006 report CMHC expected Toronto to have an 11% increase in sales and only a 3.8% increase in price. In Oshawa, they were hoping for a smaller increase in sales and 1 1/2% increase in price.
Knowing their past history, we can ask CMHC to pull out their crystal ball and tell us what they think 2008 will look like.
They are expecting to see similar growth in the real estate market with the average price continuing to increase at a pace that is greater than inflation–good for your investment. Oshawa is expected to have a slower increase (2.3%) than Toronto (4.2%).
If CMHC are true to the breed of a conservative Canadian, we will expect the real estate market around the GTA to perform well in a balanced market.
Want a hot tip? Look at Sudbury.
It’s had an almost 20% price increase over last year and is expected to continue to record a double digit price increase next year.