Agents Believe Market Is Sustainable
September 20, 2009
balance by Hans Splinter
The Royal LePage interviewers asked real estate agents and brokers across Canada several questions on their opinion about the current situation in the market.
The results of this survey show that there is ongoing confidence in the strenght of the market among professionals. 61% of the respondents believe that the recent performance is sustainable, as opposed to 28% of negative opinions (11% don't know).
Low interest rates are viewed as the most important reason for this recent successful period with two thirds of agents putting it in first place. 9% believe the economy is strengthening while 7% placed the release of pent-up demand as the key factor.
Another question lookedat the motivation of sellers. 25% of agents' clients were selling because of downsizing, 15% sold their home because of relocation and 12% were realizing a return on their investment.
Agents and brokers who believe that the recent perfomance is unsustainable were asked about the reasons for their negative belief.
"Current performance will end when interest rates start climbing, which is imminent" was the main (36%) point. "We are not adding jobs in Canada, so we are not adding buying power " was the opinion of 20% of them; while 19% believed that "The current frenzy is due to pent-up demand which will be fully met shortly" and " the Canadian housing market is overvalued and overpriced and cannot last" was the response of 8% of the group.
Royal LePage agents reveal their thoughts about buyers
Canadian Market
Canadian Interest Rates to Remain Steady, Experts Agree
Housing starts didn’t keep pace with the resale market
Royal LePage Ltd. Brokerage
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