Canadalend.com, the Nation’s Leading Private Mortgage Professionals, Weighs in on Canada’s August Home Sales, Notes Data is Skewed by 3 Cities

Share Article

Canadalend.com, the leading low-cost, private mortgage solution provider in Canada, is weighing in on August home sales figures. The company is also observing how red-hot housing data are being skewed to the upside by Toronto, Calgary, and Vancouver.

Canadalend.com

Canadalend.com, the Nation’s Leading Private Mortgage Professionals, Weighs in on Canada’s August Home Sales, Notes Data is Skewed by 3 Cities

While these figures are well above the nation’s wage growth and inflation, the data does not reflect local trends and is skewed by three of Canada’s largest cities,

Past News Releases

RSS

Canadalend.com, the leading low-cost, private mortgage solution provider in Canada, is weighing in on August home sales figures. The company is also observing how red-hot housing data are being skewed to the upside by Toronto, Calgary, and Vancouver.

According to the Canadian Real Estate Association (CREA), the country’s home sales activity climbed 1.8% month-over-month in August. On a year-over-year basis, the average price of a home in Canada grew 5.3%. (Source: “Canadian home sales climb higher in August,” Canadian Real Estate Association web site, September 5, 2014; http://crea.ca/canadian-home-sales-climb-higher-august.)

“While these figures are well above the nation’s wage growth and inflation, the data does not reflect local trends and is skewed by three of Canada’s largest cities,” says Bob Aggarwal president of Canadalend.com. “The fact of the matter is, for the majority of Canadians, the housing market looks cooler than the numbers suggest.”

Aggarwal notes that the strong price growth is being driven by Toronto, Calgary, and Vancouver. Single-family homes in Calgary are up more than 10% year-over-year, while the average house prices in Toronto, including condominiums, are up 8.9%. Vancouver housing prices experienced the most modest growth at five percent.

Outside of these three cities, Aggarwal explains, research shows that many markets in Canada are cooling. In fact, half of Canada’s 22 largest markets are showing signs of slowing down. Homes in Ottawa are down 1.1% and homes in Kingston are down about two percent. Other markets where prices have fallen include Annapolis Valley, Nova Scotia; Moncton, New Brunswick; Owen Sound, Ontario; Brandon, Manitoba; and Regina, Saskatchewan.

“Outgoing TD Bank CEO Ed Clark said he believes the Bank of Canada should further tighten lending rules to discourage consumers from taking on too much debt. Unfortunately, that’s a little short-sighted,” he adds. “If you take Toronto, Calgary, and Vancouver out of the picture, tighter mortgage rules could send shock waves throughout Canada’s slower markets.” (Source: Hodgson, J., “TD Bank’s outgoing CEO urges tighter Canada lending rules,” The Globe and Mail, September 16, 2014; http://www.theglobeandmail.com/report-on-business/td-banks-outgoing-ceo-urges-tighter-canada-lending-rules/article20618548/.)

The Bank of Canada has kept its key overnight lending rate at one percent since September 2010, with the next rate announcement set for October 22. However, it is expected that the rate will remain the same, since a hike could weaken the loonie.

“With interest rates projected to remain near historic lows for the foreseeable future, it continues to be an excellent time for first-time home buyers,” Aggarwal concludes. “The licensed, independent agents at Canadalend.com can help get those looking to step onto the property ladder pre-approved in 24 hours and find them a mortgage best suited to their financial and lifestyle needs.”

Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and help with addressing financing concerns. To learn more about Canadalend.com, visit the web site at http://www.Canadalend.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Bob Aggarwal
Canadalend
since: 05/2013
Like >
Follow us on
Visit website