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I read an article today that was put out by the Canadian Real Estate Association (CREA) discussing the real estate market and comparing December 2008 to December 2009. Here is a brief summary of highlights:
According to statistics from CREA, resale home sales reached the highest level ever for the month of December. Because of the strong demand in the second half of 2009, in particular the fourth quarter, annual sales were higher then in 2008.
In December 2009, sales were 27,744 units according to Multiple Listing Service of Canadian real estate boards. This is 72% higher then sales in December 2008, when sales dropped drastically to the lowest level in a decade. In December 2008 we had already entered the recession, and in December 2009 we are considered to be out of the recession, which shows the drastic change from year to year.
According to CREA's Cheif Economist, Gregory Klump “The extraordinary decline in activity one year ago and subsequent rebound, particularly for higher-priced real estate, is stretching current year-over-year comparisons,” he said. “By the second half of 2010, price gains are likely to shrink significantly, since a year will have elapsed since the decline and rebound. Klump added that, “Further expected increases in supply will also take some steam out of the market. A more balanced market will result in smaller price increases in the second half of the year, but a massive decline in demand similar to what we saw in late 2008 and early 2009 seems as unlikely as a massive spike in supply.”
For full article visit www.crea.ca