(PRWEB) October 31, 2012
According to the Teranet-National Bank Composite House Price Index, Canada has recently cited the largest price drop since November, 2010. In September, the HPI plunged 0.35% from previous month. A significant price drop was observed in six major cities including Vancouver and Montreal. Meanwhile, CTV reports that the official stats to point out a completely contrasting situation in Calgary where housing demands and prices are increasing simultaneously.
According to Marcus Arkan, CTO of Syndicate Mortgages, there are plenty of lessons to be learned from the current situation of Calgary where both the housing market and the economy are blooming right now. “There are a lot of buyers in the market and they want to explore their options as well. Due to economic stability in the region, the affordability factor is not much of a problem for people in Calgary. Although the prices are expected to rise again in the next quarter, we are quite confident that the interest of buyers will remain intact,” Mr. Arkan predicted.
Mr. Arkan’s prediction is based on the current report published by the first BMO Housing Confidence Report published this October. According to the report, Calgary is leading all the major cities in terms of homeowners’ intentions to buy new home within the next five years. BMO’s Housing Confidence Survey reports that 62 percent of homebuyers in Calgary are willing to buy homes including first-time buyers. This is despite the expected 2 percent rise in prices forecasted by BMO.
BMO’s report also reveals that the intention to buy new home has dropped significantly in other regions. “Yet, Calgary is not alone in this race. BMO also indicated that the intention to buy new homes has also surpassed the national average in GTA and Vancouver. However, what sets Calgary apart is home price index, which is moving upward while prices are declining in other major cities,” Mr. Arkan added.
The Teranet-National Bank National Composite House Price Index showed a 1.3% decline in Victoria home prices followed by Vancouver at 1.2% and Ottawa at 0.8%. According to the Royal LePage’s latest price survey for the third quarter of 2012, the largest over year price hike in Calgary was observed in the detached bungalow market. The overall prices of detached bungalows in Calgary have risen 6.5 percent as compared to last year. The same report also indicated a 4.1 percent increase in the prices of two-storey homes in Calgary, which now stand at an average of $431,544.
“This drastic increase in prices and demand of two-storey homes and detached bungalows has made the 2.1 percent decrease in Calgary condo market negligible and insignificant,” said Mr. Arkan. Mr. Marcus Arkan concluded the analysis with a prediction of steadier prices and stable housing market in Canada throughout the last quarter of 2012.
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.