It’s that time of year again, out with the old and in with the new. To kick off the new year, I am going to make my predictions for the 2013 Mississauga Real Estate Market.
1. Interest Rates Will Stay Historically Low
I may be going out on a limb on this one, but I don’t see interest rates changing very much in the next year. In fact, against a lot of expert opinions, I’ve been predicting every year for the past 3 years that rates wouldn’t go up and 2013 is no exception. The US has already indicated that they will keep rates low until at least 2015 and The Bank of Canada would be committing economic suicide to raise rates against the US and risk having our dollar sky rocket- which would be bad for manufacturing and other exporting businesses.
2. Home Prices Will Remain Stable
All indicators from relevant sources point to a balanced real estate market in 2013. My guess is that by the end of 2013 home prices will be up or down within a couple of percentage points of what they currently are. No drastic rise or drop in prices, although I think that spring 2013 will be a great time for home buyers.
3. Mississauga Real Estate Will Be, “In Like a Lamb, Out Like a Lion”
There’s no denying that the changes to Canadian mortgage rules last year had a slowing effect on the Mississauga Real Estate market. I feel that the way in which the changes were announced- rushed and with a hint of the sky is falling drama had as much of an effect on the slowing of the real estate market as the actual changes that were implemented.
In terms of the changes, the lowering of the maximum amortization for insured mortgages from 30 years to 25 years had the greatest effect by reducing the number of first time buyers in the market who would have other wise bought a home in the fall and instead decided to stay at home or rent in order to save more money for a down payment. As of December 2012 the Toronto Real Estate board was reporting a 16% decrease in sales from the previous year and I’m predicting the trend of lower home sales to continue for the first part of 2013, that is until potential home buyers realize the market is the best it has been for buying a home in 4 years and start home shopping again in larger numbers. Watch for a surprisingly busy fall market.
There you have it, my predictions for the 2013 Mississauga Real Estate Market!