"Prices just have to go down, don't they?" That is something I have been hearing for 10 years. Some folks get hung up on the myth that real estate follows a seven year cycle. These same people were sadly surprised when prices and activity levels continued to rise well past seven years.
I would recommend that if you are going to play the market then you should look at more important economic indicators rather than old wives' tales. You want to look at the low mortgage interest rates, high employment levels, strong economic outlook, rising incomes and high consumer confidence, as well as population growth. These indicate a positive environment for both home buyers and sellers alike.
It is expected that the number of homes sold will level off and the pressure on pricing will be reduced, however, resale home prices are expected to rise well into 2008. Saskatchewan and Manitoba are particular hot spots with other provinces losing some steam but still maintaining high levels of activity. It is expected that the Western provinces will have the highest annual price increases over the next year.
So, is it a good time to buy? Low interest rates, longer amortizations, low down payment options and steady but moderate national pricing increases of about 6% could make it a great time for you to buy. However, each home buyer is unique and should take adequate stock of their own situation, with the guidance of experts to help analyze on a more personal scale.