This market is driven by low interest rates, less inventory. Most analysts said this market is not sustainable.
As per CMHC report released on May 19,2010, Sales of Existing home will cross 100,000 for the first time by the end of this year which will be a record for Canadian Real Estate Market.
Most of the Economist & Analyst predict that the mortgage rate will start climbing from June 2010. A stateemnt made by Shaun Hildebrand, senior market analyst for the CMHC that “The era of rock bottom mortgage rates is coming to an end and the red hot Greater Toronto Area housing market will begin to lose its steam,”
But the question is Really the time ripe up for it as we listen ervery day since couple of weeks about Euro Crisis and all stock market performances which are the Berometer of econimic indicator. Really, hard decision for Central Bank of Canada for Interest rate hick as Businesses are still not back in good shape. Isn't it?
Governor, Bank of Canada, warn to the people that this interest rate will not remain for long so when you select variable rates, think for your future budget to balance with increase in payment of monthly Mortgage installment. Low interest rate environment will be until mid of 2010.
Another issue in the market is flow of inventory. Listings were up 46 per cent in April/May. With so many homes on the market, buyers have good choices than it was before to make vendors to think for their offer to accept.