'Modest' gains in real estate market breeds optimism for 2012

TRURO - Real estate sales in the northern region of Nova Scotia, including the Truro area, saw "modest but healthy gains" last year, according to the Nova Scotia Association of Realtors.

The region, which also includes New Glasgow and Amherst, saw an increase in sales of 2.6 per cent, while prices were up on average by 2.8 per cent.

"That's actually quite good growth," said Dave Uloth, regional director for the northern region, who is also a Truro realtor.

"The province is up 2.8 per cent (in actual sales) so we're right in there where we should be so most realtors would be quite happy with that."

And while challenges still exist in the industry, as with other businesses, last year's increased sales should bode well for 2012.

"I think 2012 should be a good year. I mean, with the shipbuilding contract (in Halifax) that should result in some people coming to the Truro area to buy houses," he said, because of lower prices in this area compared to the Metro region.

That should also help increase sales in cottage country areas, which have suffered in recent times, he added.

The average price of homes in this region now stands at $124,334.

Another reason to hope for an upturned market, Uloth said, is the price of mortgage rates, which are as low as 2.99 per cent at some lending institutions.

"And I mean that's excellent. Mortgage rates have never been better. So, you know, that has to stimulate the economy," he said. "I would think there's reason to be optimistic. I mean we have not gone through the same situation as the U.S. has."

The region saw a total of 3,044 homes listed last year, compared to 2,714 in 2010, an increase of 12.2 per cent.

Only two regions in the province experienced a decrease in sales in 2010, and only one had a decrease in average sale price. The Annapolis Valley region encountered a drop in sales of 4.4 per cent, with a slight decrease of one per cent in the average sale price. The Highland region sold 3.7 per cent fewer homes, with an increase of 8.3 per cent in the average sales price.

source: http://www.trurodaily.com/News/Local/2012-01-22/article-2871302/Modest-gains-in-real-estate-market-breeds-optimism-for-2012/1