Ontario Home Prices To Trend Higher In 2010

The economists have predicted a better future. However, the last 12-18 months has certainly held some uncertainty in the housing market the ---future is looking much brighter for the Ontario home market.

Canada and Ontario appears to have avoided any lasting impact from the collapse of the US housing market and the subprime mortgage market meltdown What we have seen over the past 18 months was fear versus demand and fair market values relative to the true economic situation in Ontario. The stability is giving them a large footage

Here is my rational for Ontario home price appreciation for 2010.

Ontario house prices are valued. Despite a healthy appreciation in home prices in Ontario between 2001-2009 we have avoided the huge run ups (and drops) in prices seen in Alberta and British Columbia.

Ontario's housing supply appears to be inline or undersupplied versus the demand.

Canada has contributed almost 8.5% towards debt. While this is bad news for most taxpayers, borrowing to this degree will definitely cause price inflation. This will directly and positively affect the value of real estate.

The only question with wealth is, what do you do with it?

The world economy appears to be stable or growing. Despite a US collapse, China's GDP growth rate for 2009 is estimated to be around 8.2% and is forecasted to be in the 8%-9% range for 2010 India grew at a rate of 7.9% over 2009 and expects 7% growth rate in 2010. Since Canada benefits directly from rising demand of natural resources, if the demand continues, this will be sure to have a further positive impact on the Canadian economy.

The unemployment rate in Ontario rose sharply as a result of the US economic collapse but has since started to slowly decline. The unemployment rate currently sits around 8.5%, it averaged around 6.2% during the 36 months of 2006-2008.

Slowly improving consumer self-confidence and record low interest rates are bound to have a helpful impact on the spring 2010 housing market. The July law has come into some negative impact on the people but it is not so.

Where prices go further than the summer of 2010 will really depend on how much and how speedily the bank of Canada intends on raising rates.