One of the Major driving factors of the continued strength in the real estate market is low interest rates.
With these low rates more of us are able to afford mortgages, that we couldn't have a decade ago, so less people are renting more are buying, families are up sizing, this combined with continued population growth, seems to be driving real estate market to higher and higher levels across the GTA. Which naturally raises the question, How long will this last?
One of the main rallying points of those calling for a housing crash, has been the argument that rates won't stay at these levels forever, and eventually will go up. We hear this argument all the time when someone talks about a big Correction or Crash is coming in real estate.
Well we all can take a collective sigh of relief there seems to be more evidence that rates likely won't be going up any time soon, based on a recent Reuters Poll http://ca.reuters.com/article/businessNews/idCAKCN0R31MF20150903
In this poll by Reuters in which several of the top Canadian Economist were Polled about the future of interest rates, we see that the general consensus, is that rates will stay low well into 2017 as the bank of Canada tries to steer us out of these tough economic times especially with the huge drop we've recently seen in oil prices.
In addition, many of the group even felt that rates may drop again if this mild recession continues.
As low interest will help the Canadian economy through these tough times in several ways, keep house holds spending, supporting real estate activity and construction and keeping our dollar low versus, the US promoting exports, and business investments and hiring.
So low interest rates and more importantly for the housing market, low mortgage rates will likely continue to be the norm for the foreseeable future,
Again supporting the theory that the Canadian housing market, especially across Ontario & the GTA will continue to be strong, in my opinion.
For more information please feel free to contact me and don't forget to register for my FREE home buyer seminar.