Our housing market is slowly but steadily improving: Resale activity rose, home prices increased over last year’s numbers and mortgage rates reached rock bottom earlier this month!! Read on for more information:
Canadian housing market is returning to normal, as evidenced by home
sales activity which now stands halfway between the recessionary low in December 2008 and the record high in December 2009. New listings are keeping pace with sales activity, which has helped to maintain a balanced market since the spring.
Amidst an uncertain economic landscape globally and in the United States, the outlook of a strong upward momentum for Canada’s economy has been tempered somewhat. Recent developments are pointing to a slowdown underway and have not been supportive of monetary tightening.
While suspense is building up about the next rate hike by the central bank, rates are still at rock-bottom levels and there is still plenty of monetary stimulus. “The continuation of low interest rates is supporting sales activity, which has been improving over the past few months in a number of major markets including Vancouver,” said Georges Pahud, CREA’s President.
Resale housing activity rose for the third consecutive month in October. Home sales climbed 4.6% over September. This monthly rise in activity builds on similar increases in August and September, pushing home sales 13.3% above July levels. Three-quarters of local markets posted monthly upward trends, led by Toronto and Vancouver.
National home prices remained stable as reflected in year-over-year comparisons. The price of homes sold in October averaged $343,747, up less than 1% compared to a year ago. Average prices rose or were stable in more than three-fourths of all markets on a year-over-year basis. Average price trends are expected to further stabilize in keeping with a balanced market.
Mortgage rates stayed highly accommodating during November. 5-year fixed rates edged up to 5.44% in the final week of the month after posting 5.19% in the preceding two weeks. However, the rates were quickly cut back to 5.19% in the first week of December. Rock-bottom interest rates and stabilizing home prices continue to keep homes within reach for many Canadians.
If you’re thinking of buying or selling a home in the Calgary area, we’d love to help you! Contact Ryan and Sheri MacDonald for more information on how we can help you achieve your real estate goals at 403.519.9102 or via email at RyanMacDonald@shaw.ca