Bubble ? Or Investement Appreciation ?

Seems not everyone likes good news. As positive headlines of the recovery continue, there are "bubble theorists" who point to the "huge " year-over-year percentage increases as clouds on the housing market horizon.

The cooling and then last year's recovery is today making for dramatic year-over-year comparisons. Because we're now past last year's lowest points, we'll no longer see the dramatic percentage jumps. Come the summer when we see smaller percentage increase , it won't mean that things are worse , it will simply mean that the growth is once again following expectations.

Our federal Government recently introduced 3 new lending rules that affect " government-backed insured mortgages"-high-ratio mortgages, where financing is 80% or more of the property's appraised value. These changes. focused on maintaining "healthy growth," will have impact.

That said Bank of Canada's inflation expectations remain contained so there's no reason to think mortgage rates will ballon in the near future. Taking advantage of low rates and locking in when it looks like rates are going up, means making the most of market opportunity.

 

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Sherin Nassar

Sherin Nassar

Sales Representative
CENTURY 21 Miller Real Estate Ltd., Brokerage*
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