The Canadian Real Estate Association have revised their real estate sales and price forecasts after low interest rates and sensible expectations about the economy have created a sense of optimism about the market.

The most remarkable turnaround is in Alberta where average prices have risen 11.3% year-on-year according to the association’s figures.

It is not getting carried away however.  For Alberta, it forecasts residential sales will decrease by 2.5% this year to 55,000 units and increase by 10.5% in 2010 to 60,750 units.

“It largely reflects something that already happened namely the second quarter which has seen a combination of low interest rates and a sense among consumers that the worst of the recession may be over,” said Gregory Klump, chief economist with the association.

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