Growing confidence in an economic recovery this year will boost an already "unusually strong" housing market, says a Royal LePage survey. Part of that growing confidence comes from the already higher than expected housing prices, according to the report.
Phil Soper, president and chief executive of Royal LePage Real Estate Services says there's strong momentum heading into this new year that shouldn't let up through the first half of 2010.
"The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs," he says. "This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year."
As supply eventually starts to rise again and has prices rise for houses, the market should start to moderate to a slower pace in the second half of the year, Soper says.
The numbers from 2009 back that predicted momentum. Nationally, the average price of detached bungalows rose to $315,055, a six per cent increase, according to Royal LePage. Standard two-storey homes rose to $353,026, up 5.2 per cent, and the price of a standard condominium rose to $205,756, up 6.4 per cent.
This article is reprinted from www.mortgagebrokernews.ca