One of the most common questions that we get from people who attend our seminars and the general concern of Canadians is,
Have we reached the bottom?
It appears that we have our answer from at least one source at Bank of America. For the last quarter of 2011 they anticiated a drop of 8% in home prices and they actually came in at a decrease of only 3.2%.
B of A doesn’t think there will be any drop in price even close to that, and if you have read our blog you will easily come to the conclusion that all of the real facts confirm that same opinion – prices have pretty much stopped decreasing and have started increasing strongly in hot markets – Florida and Arizona to name a couple.
From 2012 through 2020 BofAML predicts cumulative growth of 42% in home prices — 4% on an annualized basis — comparable to its prior forecast.
If you are an investor, that should strike you as the number of sustainable long term growth.