Housing market not headed for crisis!!
Housing market not headed for crisis!!
The recent slide in Canadian housing sales should not be characterized as a free fall, but rather “a return to more normal levels,” according to the Conference Board of Canada.
Recent fears that Canada’s housing market is in a bubble similar to the one experienced in the U.S. are overstated, Mario Lefebvre, director for the board’s centre for municipal studies wrote in his blog Sept. 7.
“It is undeniable that Canada’s housing market is slowing down. However, this should not be characterized as a free fall. Canada’s housing market is due for a pause. But, most importantly, the fundamentals of our economy remain sound. Contrary to the United States, this country’s labour market has rebounded from last year’s recession. Interest rates, while rising slowly, remain very low,” he says.
“This market will pause, but it will not nosedive -- in contrast to the housing market south of the border, which is still battling a large inventory overhang that should keep it from rebounding promptly even if employment were to rise swiftly.”
Still, the board’s Metro Resale Index shows the numbers in Canada don’t look good.
On a month-to-month basis, sales declined in 26 of Canada’s 28 largest urban centres during July and in 18 of 26 during June.
On a year-over-year basis, sales decreased in all 28 markets during July, with declines ranging from 3.5 per cent in Trois-Rivières to 48.5 per cent in Fraser Valley.
Nevertheless, home prices in July grew in all 28 markets on a year-over-year.
Housing boomed in Canada for a decade and now it’s beginning to balance, “a sign that the recent large declines in sales have more to do with a return to more normal levels of activity than the start of a steep downturn,” Lefebvre says.
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Thoughs of you that are currently selling, your prices need to be reduced until you start getting traffic because the buyers are dictating currently... the following are Edmontons stats...
Single-family home prices fell for the second straight month in the Edmonton resale market in August. Meanwhile, condo prices continued their decline.
The average single-detached home sold for $372,253 in August, down 1.96 per cent from July, according to Multiple Listing Service dated released by the Realtors Association of Edmonton last week.
"At the beginning of the year, there was a fear that the Bank of Canada would be ratcheting up rates quickly and mortgage rates would go up," said Lai Sing Louie, Canada Mortgage and Housing Corporation's regional economist, to the Edmonton Journal. "They haven't gone up quite as fast as people expected, but at that time, that got a lot of people to buy. That sense of urgency appears to have dissipated."
Average condominium prices also dropped 2.99 per cent to $232,230, down from its April high of $253,788.
Recent fears that Canada’s housing market is in a bubble similar to the one experienced in the U.S. are overstated, Mario Lefebvre, director for the board’s centre for municipal studies wrote in his blog Sept. 7.
“It is undeniable that Canada’s housing market is slowing down. However, this should not be characterized as a free fall. Canada’s housing market is due for a pause. But, most importantly, the fundamentals of our economy remain sound. Contrary to the United States, this country’s labour market has rebounded from last year’s recession. Interest rates, while rising slowly, remain very low,” he says.
“This market will pause, but it will not nosedive -- in contrast to the housing market south of the border, which is still battling a large inventory overhang that should keep it from rebounding promptly even if employment were to rise swiftly.”
Still, the board’s Metro Resale Index shows the numbers in Canada don’t look good.
On a month-to-month basis, sales declined in 26 of Canada’s 28 largest urban centres during July and in 18 of 26 during June.
On a year-over-year basis, sales decreased in all 28 markets during July, with declines ranging from 3.5 per cent in Trois-Rivières to 48.5 per cent in Fraser Valley.
Nevertheless, home prices in July grew in all 28 markets on a year-over-year.
Housing boomed in Canada for a decade and now it’s beginning to balance, “a sign that the recent large declines in sales have more to do with a return to more normal levels of activity than the start of a steep downturn,” Lefebvre says.
--------------------------------------------------
Thoughs of you that are currently selling, your prices need to be reduced until you start getting traffic because the buyers are dictating currently... the following are Edmontons stats...
Single-family home prices fell for the second straight month in the Edmonton resale market in August. Meanwhile, condo prices continued their decline.
The average single-detached home sold for $372,253 in August, down 1.96 per cent from July, according to Multiple Listing Service dated released by the Realtors Association of Edmonton last week.
"At the beginning of the year, there was a fear that the Bank of Canada would be ratcheting up rates quickly and mortgage rates would go up," said Lai Sing Louie, Canada Mortgage and Housing Corporation's regional economist, to the Edmonton Journal. "They haven't gone up quite as fast as people expected, but at that time, that got a lot of people to buy. That sense of urgency appears to have dissipated."
Average condominium prices also dropped 2.99 per cent to $232,230, down from its April high of $253,788.
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