The housing market forecast dealt with here is the broad area of Canada and the United States of America. What can one expect during 2010?
2010 Housing Market Forecast
The general tenor among analysts is that the housing market will continue to improve during 2010.
These are the reasons why:
- Low mortgage rates
- Deflated home prices equal good bargains
- Improving Economy
- Reduced inventory because of value bargain hunters
While the economy is far from being stamped with a bill of health, things are steadily improving from 2008. 2010 is the year of high hopes of recovery. Even if the coming year does not provide all the answers, which it undoubtedly will not, it is likely that prices will stabilize and increase from the devastating lows of today.
In Calgary Alberta, existing home sales from January to September of 2009 rose 63%. Below is the housing market prediction for Canada:
2008 (actual)2009 (forecast)2010 (forecast)
Housing starts 211,056 141,900164,900
Listed home resales 433,990 441,300445,150
Average price for resales$303,607 $312,950 $324,500
Housing Market Crisis: Buy, Sell, or Rent?
Many people are asking themselves the same question of whether they should buy, sell, or rent. The answer depends upon each individual circumstance. Here are a few scenarios where someone might do each.
Someone that already plans to buy a home may choose to buy sooner than later. Doing so would could save an average of eight to ten thousand dollars over the next year. As well, they may have the opportunity to lock in a long term interest rate that is quite affordable.
Another person may choose to sell his home during 2010 if he is carrying heavy debt. The equity gained in his home may be a net negative if his debts are accruing interest at a higher rate. While he may gain ten thousand in equity, he might be losing double that in home repairs, mortgage interest rates, and credit card debt. As well, the stress of making payments when someone has lost their job or has little job security should not be underestimated.
In such circumstances, many choose to rent until they are in a financial position to buy. Panic and greed should never be motivating factors when deciding to buy a home. In a world full of strife and turmoil, many find that leading a simple life has bigger payoffs than chasing volatile markets.
Housing Costs Estimates and Decisions
Each person needs to decide from themselves as they will live with their decision and home. 2010 will hopefully be a year of recovery and economic healing. Whatever the case, forecasting and predicting the housing market for 2010 should help many make an informed decision.
Sources
Derek Abma, “ Housing Market to Improve in 2010: CMHC Forecast ”, 2 November 2009, Financial Post.
Julie Haviv, “No Housing Upturn Until 2010”, 6 December 2007, Reuters.
