Categorized | International

Canada’s Housing Market Gaining Strength

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According to the most recent data reports, the residential real estate market in Canada is showing signs of improvement. For the first time in two months, residential property prices posted an increase. The average home price rose roughly a quarter of a percentage point, which put prices just over five percent better than they were one year prior.

Analysts and realtors had both grown wary of the housing market in Canada, as it experienced a lackluster finish to 2011. By starting off 2012 on a positive note, there is hope that the market will continue to improve as the year progresses.

Toronto posted the largest gain in residential real estate pricing in comparison to last year. The average price of a home in Toronto increased by seven and a half percent.

While realtors and real estate analysts breathed a collective sigh of relief with the news of the increase, economists and other industry experts warn that the modest gain in January may not be reflective of the overall outlook for this year. Year-over-year gains continue to get smaller, leading many to believe that housing prices will stabilize this year. Most realtors have held hopes that the market would see a strong increase by the year’s end.

Although the prospects for major growth in the residential real estate market are unlikely at this point, the recent gain has provided some hope in Canada, where many people were starting to fear that housing prices might plummet. It appears that the market will not experience the rapid descent that most feared after the rough month of December.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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