Flipping open The Financial Post yesterday morning, I was struck by the powerful message of an article titled "Housing Sales Show Two-Month Rebound". I was really happy about reading POSITIVE news on the housing front, and in one of our national newspapers, no less!
Unfortunately, I don't always feel that the media focus as much on the positive numbers and trends as they do on negative ones, but Financial Post journalist Jamie Sturgeon did a well-rounded job, and I thank him for including my thoughts in his piece.
The FP article talks about the current convergence of:
- Low interest rates: 5-year mortgage rates at an all-time low
- Government incentives
- Increase in the allowable withdrawal from registered savings plans for first-time buyers to $25,000 from $20,000
- Tax credit of $5,000 homebuyers may count against their incomes
- Large inventory of homes for sale
The cumulative effect of these factors is causing people to say, "THIS is a time I can access the market." The greatest demand, currently, is for entry-level homes, driven by first-time homebuyers.
The Financial Post article reported that, according to the Canadian Real Estate Association, the number of homes bought and sold in March rose 7% to 31,135 units, seasonally adjusted, from February, which was already more than 10% better than January!
Does this article reflect the reality in your neighbourhood?