Toronto, Ontario (PRWEB) November 15, 2012
Mortgage expert, Marcus Arkan, CTO of Syndicate Mortgages, recently presented his analysis and forecast of Canada housing sales and market. According to Mr. Arkan, home sales have plunged all across Canada and the market is up for a price correction of 10 to 15 percent. Canada housing market, according to Mr. Arkan, still has a lot of positive aspects that sets it apart from the pre-bubble US market.
Mr. Arkan added that he is in complete agreement with CIBC economist Benjamin Tal who recently stated that Canada is not heading for a US style housing bubble. “Canada’s market is cooling down. That is exactly what we all expected after the new mortgage rules were introduced. The best part is that interest rates are still low and sales are now moderate. We can predict that the market is going for a softer landing and not a crash,” Mr. Arkan said.
According to Bank of Canada’s recent forecast of economic growth, GDP is expected to rise 2.3 percent in 2013 and 2.4% in 2014. Mr. Arkan is of the opinion this forecast will lead to lower housing starts in 2013, especially in the condo market of Toronto and Vancouver. He further added that interest rates, which are also expected to stay low throughout 2013, will also keep borrowers from being affected by stricter mortgage rules.
According to the Teranet House Price Index, average home prices in Canada are currently 3.6% higher than a year ago. Mr. Arkan, however, suggests buyers and borrowers to focus more on the rate at which the prices are rising. “Price gain has decelerated considerably in the past ten months,” he added, “and that is what matters the most right now. This is one of the major factors that distinguish our situation from the US.”
Teranet-National Bank Composite House Price Index also indicated that price sales were 0.4% lower in September than in August. “Historically, winter sales are always lower, and by the mid of November, the market goes into hibernation. So, there is a good chance that the first quarter of 2013 will begin with a lower price index.”
When asked about whether buyers should wait for the prices to correct rather than buy a house right now, Mr. Arkan explained that the decision depends more on affordability rather than the price. According to the Calgary Herald, people are buying overvalued luxury homes because they are able to afford it. On the other hand, CREA indicates a severe drop in major condo markets where prices have not risen as drastically.
For more information on Canada housing market and home prices, visit the website
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.
Syndicate Mortgages Inc.
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