In Canada, the economic downturn is a key factor in the drop of sales in the real estate sector. In 2009, 91,000 of the 415,000 jobs lost in 2008 were reestablish. Canada's unemployment woes contributed to the decline in the housing sector. By 2010, the employment opportunities are expected to increase by 0.9 percent and double that growth in 2011.

In 2010, the unemployment rate is expected to rise to about 8.4 percent. The population increase affects the housing market demand. More square footage is often needed as families add new members to the family. many new families with young children are good prospects in the housing market. The birth rate has been slightly lower than normal. This equates to less housing desire.

Current reports show that there could be some indications of the market recovering in 2010 and 2011. Experts predict that the housing market could possibly grow to almost 190,000 units in 2010. In 2009, just 150,000 units were added. Over 200,000 units are predicted for the 2011 market. Experts predict that the Western Canadian market is expected to recover before other Canadian provinces.

In the fourth quarter of 2010, experts expect another drop in housing prices. At the end of 2009, the average house price in Canada was $342,231. The price is expected to fall slightly to $339,126. The fall in price will motivate market activity. By 2011, the prices are expected to grow to $348,391.

The most pricey area to purchase a house in Canada is in Toronto. The average house price is 2010 is forecasted to be almost $430,000. By 2011, the house owner can expect to pay an additional $10,000 on average for a house in this area. The most affordable place to purchase a house is in London, Canada. In 2010, the house owner can look forward to paying approximately $220,000 for a house. Real estate prices should just grow to $221,000 in 2011. Other examples include Markham homes for sale, and further west, the Vaughan real estate sector, both of which have seen more buyers than sellers thus propping up prices.

A one year posted rate can be secured by house owners with mortgage rates ranging from 3.7 to 4.3 percent. Three and five year posted mortgage rates could range from 4.4 to 6.0 percent. Potential house buyers and investors could experience an grow in mortgage rates by 1 percent or more in 2011.

Existing house sales experienced an grow in 2009 and are expected to carry on in 2010. The desire for existing house sales exceeded the supply; therefore, prospective house buyers considered, new houses as an alternative. Canada has also experienced a large immigration rate over the past number of years. The condo and rental market has mostly filled the vacancies. The vacancy rates are expected to remain consistent over the coming years.

The Canadian government has taken action to cool housing activity within the coming months. This will be achieved by providing government supported mortgage insurance. The new mandate will grow the down payment needed by prospective house buyers. bigger initial investments will dissuade some prospective house buyers from purchasing right away. Real estate market activity could slide as a result.