Market

Indications are that 2013 is going to be another strong year for Canadian real estate. The Canadian Real Estate Association releases its year-end figures later this month, but a number of local markets have December figures showing strong sales and price growth in what is traditionally a slow period.

Compared to a year ago, Toronto saw a 14% increase in sales and an 8.9% price hike. Calgary registered 8% sales growth and an 8.6% price increase. Vancouver posted a stunning 71% increase in sales while prices in the most overvalued market in the country rose about 2%.

It seems projections for ongoing low interest rates have allowed buyers to shrug off the tighter mortgage rules that stalled the market through the second half of 2012 and the first half of 2013. It also leaves interest rates as the key factor in making projections for 2014. Real estate giant Royal LePage forecasts current market strength will carry through the spring of 2014, as long as mortgage rates don't rise considerably. The Bank of Canada has said rates are going to stay put until 2015. But Finance Minister Jim Flaherty caused a bit of a stir over the weekend when he said U.S. economic moves and reports from the IMF and OECD will put upward pressure on Canadian rates.

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Ryan Dodd

Ryan Dodd

Sales Representative
CENTURY 21 Choice Realty Inc., Brokerage*
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