Last week, I discussed how home sales in the United States are at their highest level since 2007, but things are also looking up in the Canadian real estate market.
Though the economy in Canada has not been hit as hard as its US counterpart, the Canadian Real Estate Association (CREA) will be adjusting its forecasts for 2009 and 2010 based on recent sales activity.
Sales records have been set every month since July and national sales in average are up 6.6% from last year. CREA is now forecasting sales activity for 2009 to be on par with the healthy levels seen in 2004. MLS sales activity has been forecast by CREA to go up an additional 7% in 2010 which would make 2010 the second highest year for sales on record.
According to CREA President, Dale, Ripplinger, buyers late in 2008 and earlier this year were putting off buying or selling until the economy improved. In a recent report released by CREA, Ripplinger states, “With the economic outlook having improved since then, the release of that pent-up demand will boost activity over the rest of the year and in 2010.”
Many sellers were taking their homes off the market in late 2008 waiting for market conditions to improve. Others who might have listed their homes in 2009 held back. At the same time many first time buyers were jumping into the market due to low interest rates, the fact that prices had dipped, and bidding wars were no longer the norm.
With higher demand and lower supply, of course home prices started to rise again. In fact based on results to date, the year is forecast to be up 4.2 per cent in 2009 and a further 4.7 percent in 2010. With strong price increases, new listings are likely to continue to increase as well.
Naturally this increases the demand for home stagers as more homes come onto the market. As a home stager it’s critical to educate home sellers about the importance of staging and especially why it’s most effective with first-time buyers. For more information on why this is true and a more detailed explanation of how demand and supply in the real estate market effects a home staging business, download my free Ask Staging Diva report: “Can I grow a home staging business in a depressed economy?”
Are you a Canadian home stager? Can you share what your experience has been as the market has been shifting? Please leave your story in a comment below.
Debra Gould, The Staging Diva®
President, Six Elements Inc. Home Staging
Debra Gould developed the Staging Diva Home Staging Business Training Program to create opportunities for others to grow their own profitable home staging businesses. Debra encourages anyone concerned about starting or growing a home staging business in today’s economy to download her free special report: “Ask Staging Diva: Can I grow a home staging business in a depressed economy?”
[tags]home stagers, canadian real estate market, CREA, real estate news, home staging, debra gould, staging diva[/tags]