2011 Housing Forecast Seminar #leduc

2011 Housing Forecast Seminar
This week in Edmonton, the 2011 Housing Forecast seminar took place.  Here's a few key points and predictions for the upcoming year. 

MLS trends:

·  Generally balanced market, 3% rise in prices overall with seasonal fluctuations

·  Fewer new spec homes creates demand for resale

·  Inventory and DOM drop in quarter 3 and 4

·  Average price dropped in 2010 about 10% due in large part to less luxury sales

·  recreational properties will be slowed by low cost real estate opportunities in the U.S.

Development trends:

·  New standard detached lot is 40' wide (as opposed to 30')

·  most development growth on South, SW, SE side of Edmonton with Leduc and surrounding towns offering a variety of product and potential for growth

·  Housing starts flat until 2012 when we will start to see a modest increase in demand

·  Rental trends:

·  Vacancy rates dropping slightly (to around 3.5%) construction likely wouldn't ramp up for new rental housing unless vacancy rates drop down to 2%

·  Rent rates holding steady, expect rates to move up slightly, about 2% in 2011