Canada’s residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, according to this month’s Royal LePage House Price Survey and Market Survey Forecast. As confidence in the recovery builds in early 2010, increases in average house price levels and overall market activity are expected to continue. The hot market should level off in the second half with higher house prices, an anticipated modest increase of interest rates later in the year and an improvement in the housing listings supply.

In contrast to the difficult months during the worst of the recession, house prices appreciated during the later part of 2009, with fourth quarter price averages surpassing averages from the fourth quarter 2008. Regions that saw the strongest declines during the recession are now showing marked gains. One such region is Greater Toronto, which includes Oakville and Burlington. The average price for a detached bungalow in this area increased by 12.9 per cent in the fourth quarter of 2009 compared to the same three months of 2008. Condo prices rose by 3.2 per cent. The only drag on prices was for a standard two-storey homes which lagged a bit at 4 per cent lower than in 2008. The survey did not look at luxury estate homes which make up a significant portion of the housing stock in Oakville and Burlington. We have, however, seen prices recovering here as well.

According to Phil Soper, president and chief executive of Royal LePage Real Estate Services Ltd., Brokerage, “No other sector of the economy has been as highly affected by economic stimulus as housing. As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property. “Our forecast is built upon an expectation that interest rates will ease upward before the year’s end, which should have a dampening effect on demand, allowing it to come into balance with the supply of resale homes on the market,” Soper adds. “Further, we expect to see an increasing number of homes listed for sale as the year progresses – as Canadians regain confidence in the economy, they should be more willing to enter into a large financial transaction such as the sale of a home.”

The Toronto market saw year-over-year price increases across the housing types surveyed in the fourth quarter. Of particular interest is the increase in sales of higher-priced units, which were hit hard by the recession over the previous 12 months. There was a surge of first-time buyers active in the market last year, depleting the inventory of entry-level units. They are expected to be joined by move-up, executive, and luxury buyers in the coming year, resulting in additional price appreciation.

Whether you are selling your home or looking to buy a home, you want a knowledgeable broker at your side – a broker who knows the area and the market and who can eliminate a lot of guesswork for you. At The Dan Cooper Team, for example, we have a team of multi-disciplined professionals with more than 40 years of combined experience. When you work with the best you can be assured of getting a deal that is right for you.

Dan Cooper is an award winning Broker with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his innovative and interactive website at DanCooper.com. Be sure to catch the Dan Cooper Real Estate Series on DailyWebTV.com. For his free booklet How To Sell Your House For Top Dollar – Fast! or his Guide to Oakville Real Estate, please call the Dan Cooper Team.