Note from the Publisher

The market was slow across the board during the latter part of 2008, but some real estate offices are forecasting a more positive market in 2009. Royal Lepage, one of Canada’s largest real estate companies, conducted a market survey to forecast 2009 and reported that the average Canadian home price will drop by three percent from last year to $295,000, while transactions are projected to fall to 416,000 (-3.5 per cent) unit sales in 2009.

At the same time, Scotiabank’s senior economists forecast that Canadian real estate prices will drop 10-15%, with B.C., Alberta and Saskatchewan specifically feeling the effects. Even with this downturn, these economists believe that the increase in prices over the last ten years will remain intact.

Reports from the Canadian Association of Accredited Mortgage Professionals (CAAMP) state that while the American mortgage system fell apart, Canada has steered clear. This is largely part and parcel to the Canadian system being supported by low and steady interest rates, strong underwriting processes, a variety of different product types, and healthy re-sale activity. Canada and its residents are known to be more conservative, which means that consumers make decisions based on affordability and in turn are more likely to meet the terms of their mortgage agreements. Also, studies such as the International Monetary Fund continue to consider Canada as one of the least overvalued housing markets.

Recession is a strong and intimidating label for what is occurring internationally, but just as with a negative period of time in our lives, it is important to learn from it and focus on the positives to succeed in the future. What positives, you may be asking yourself. Housing affordability is a major positive outcome. Not only are prices reaching a level most consumers can afford, interest rates have been substantially lowered.

Overall, consumer confidence is important now more than ever. December proved a profitable month for Fernie businesses, and with snow eminent and attractive homes on the market, this success should continue to transfer to the real estate market over the next few months.Happy New Year!