 | Bill's Market Update Dear Dear Friends and Clients: So now the question is : Will 2010 repeat what 2009 has done or perhaps better or worse? This is the most pressing question facing a lot of home buyers and sellers alike. I believe the first half of 2010 should be a continuation of where we left off in 2009 due to continuing low interest rates environment, steady immigration , improving economy coupled with the traditional Spring market demand. A modest gain in the range of 3% to 4% during this period is plausible. However, the later half of the year is probably going to experience a slight drop in demand and prices due to very probable interest rate increase, the implementation of the HST which has been partially responsible for the current increased demand which should result in a transitional partial "void" in demand after its implementation. The extend of interest rate increase is hard to predict ; a lot also depends on inflation and the strength of the Canadian dollars. Should interest rate increase by more a 1%, there absolutely will put downward pressure on prices for those very marginal home owners may have to sell due to unaffordability as our Minister of Finance and The Governor of the Bank of Canada have both cautioned in the past. My piece of advice to home owners who are contemplating a move this year ; do it in the next few months. For the first time buyers, remember any time is the right time if the right home comes along because long term it appreciates --- guranteed! For people who are trading from one home to the next --- sell in the Spring and buy in the Fall /Winter or whenever an opportunity presents itself. I hereby wish you all a very healthy and prosperous 2010.. I remain... Your Sold Specialist | |