February Sales Stats and Future Interest Rates

As noted in the business section of the Toronto Star, sales of resale homes in the GTA remained hot in February. According to the Toronto Real Estate Board,sales were up 77% over 2009 and the price average continued to climb up 19% over February 2009. On a really positive note listings finally started to improve with an increase of 24%.
 Locally in the Peterborough Real Estate market the market again showed a big improvement over February 2009.Sales increased by 42 % and sales volume was up 58 %. I do not have the average price increase, but it will also reflect the increase. Similar to Toronto, the Peterborough market had 471 new listings compared to 416 in 2009, but our inventory still remains low with 1605 active listings compared to 2092 listings in February 2009.
 As I haved previously blogged February 2009 was at the low end of the market last year, but the unit sales for 2010 still compare favourably with 2008 which was a very good sales year, especially winter and spring.
 So what does all this mean for future interest rates and the Bank of Canada's view of inflation. The Governor, John Carney did leave the bench mark lending rate at the historic low rate of0.25% at Tuesday's meeting. Mr. Carney also pledged last year that the Bank would leave the rate at that level until July 2010. There are signs that the economy is better and even the core inflation rate of 2% target in January came in sooner than expected. The next date for the Bank to meet is April 20 and that decision could mean the  end of very easy money. The Bank had originally estimated that the economy would not return to a full tilt until late 2011, it may in fact happen before, and rates will start to increase sooner rather than later.
 How does all of this impact our local Real Estate Market. Locally the most units sold in February were in the range of $ 200,000 to $ 220,000 followed by the price range of $ 220,000 to $ 240,000.This showes that it is still an affordable market, and with more new listings every day it is still a good time to buy and a good time to sell. it could be a more balanced market this Spring compared to the last few months. As I have previously blogged a five year fixed rate mortgage will be the best option for first time buyers or those with less than 50 % equity, but if you are in a good equity position the variable rates may never be as low, so take advantage today. For more detailed mortgage information make an appointment with our Centum Mortgage Manager Mike Jones at 705-743-4444. Check out my web site at Harry Huffman.com and link to Mortgages to see the current rates, updated evry day.

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Harry Huffman

Harry Huffman

Sales Representative
CENTURY 21 United Realty Inc., Brokerage*
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