It would really still be too early yet to foreshadow the end of the shrinking housing market in the United States but the last few weeks there have been encouraging signs that could finally put an end to this depression.
These findings come from the latest report, Perspectives of the Real Estate Sector, published by Scotia Economics. Sales of new and existing properties have reached a new cyclical low point of 5,4 million units annualized in June and have decreased by about 35 % in relation to their summit reached at the end of 2005, but the decline has weakened since last spring. The fall in prices for houses is slowing down and in certain regions one has noticed a certain increase in sales.
Adrienne Warren, principal economist at Scotia Economics, has said: « Anyhow, the possibility that there would be a significant recovery in residential sales is limited, given the fact that the price flare-up for gasoline and growing unemployment exert considerable pressure on household credit. »
« Real salaries continue to decrease from one year to another since last November and consumer confidence maintains itself at its lowest point in 16 years. »
In this report one also states that, contrary to the situation prevailing in the United States, few signs permit to foresee a significant surplus situation in Canada. The resale market in Canada is, among other things, also on the increase.