I anticipate that we will continue to see price appreciation continue through this year at above-average rates. The big question remains as to when we will see any significant increase in mortgage rates. Given current events in Europe, our mortgage markets will be looking east for direction, rather than concentrating on domestic economic data. As such, I don’t expect a rapid interest rate growth in the near-term.
In summary, the region’s housing market remains tight with little sign that we will see any significant increase in much-needed listings. This, combined with rising home prices, has some concerned that we could be heading towards another housing bubble, but the real estate market and economic climate of today are very different to those that led to the bubble in 2007. Nobody can predict what’s going to happen with 100% certainty, but given the current state of things, I don’t believe there is a risk of history repeating itself in the foreseeable future.