On the same day, the Canada Mortgage and Housing Corporation [CMHC] predicted the Canadian housing market would experience a gradual slowing, or soft landing, over the next two years, as builders begin to reduce inventories,
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Toronto, Canada (PRWEB) August 26, 2014
Canadalend.com, the leading low-cost, private mortgage solution provider in Canada, is announcing that Canada’s housing market will experience a soft landing, despite recent data showing housing prices accelerating.
According to the Teranet-National Bank house price index, Canada’s house price growth accelerated in July. The index, which tracks price changes for repeat sales of single-family homes in 11 major cities, was up 4.9% year-over-year and 4.1% year-to-date. In June, the index was up 4.4%. (Source: “Teranet - National Bank National Composite House Price Index,” House Price Index web site, August 13, 2014; http://www.housepriceindex.ca/Default.aspx.)
Housing prices in Calgary were up the most this past year, climbing 8.15%. Prices in Hamilton were up 7.1%, Toronto experienced 6.6% year-over-year growth, and Vancouver housing prices increased 6.1%. Prices in Victoria (2.5%), Edmonton (3.7%), and Montreal (1.5%) experienced milder price gains. In addition, prices were soft in Winnipeg (-0.13%) and Ottawa (-0.12%), while Quebec City and Halifax saw housing prices fall 1.15%.
“On the same day, the Canada Mortgage and Housing Corporation [CMHC] predicted the Canadian housing market would experience a gradual slowing, or soft landing, over the next two years, as builders begin to reduce inventories,” says Bob Aggarwal, president of Canadalend.com. “That doesn’t mean Canadian housing prices will grind down; the CMHC predicts the average MLS price calls for a 4.5% gain to $399,800 in 2014 and a further 1.8% gain to $406,800 in 2015.” (Source: “CMHC’s Forecast Indicates a Soft Landing for the Housing Market,” Canada Mortgage and Housing Corporation web site, August 13, 2014; http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2014/2014-08-13-0816a.cfm.)
More specifically, housing starts in the Prairies are expected to increase to 52,900 units in 2014 before moderating to 50,800 in 2015. Housing activity in Ontario will regain momentum throughout the rest of 2014 before easing in 2015, while housing starts in Quebec will be steady in 2014 and 2015 near 38,500 units. In Atlantic Canada, housing starts are forecast to decline close to 14% in 2014 and a further three percent in 2015.
Aggarwal explains that in spite of the rising prices and solid outlook, the broader Canadian housing market will experience a soft landing thanks to gradually rising interest rates and the improving Canadian economy.
“At a time when many thought the Canadian housing market would be stalling, it remains, robust. And with mortgage rates hitting six-month lows, the demand for housing will remain strong as we enter the autumn selling season,” Aggarwal concludes. “Home buyers looking to take advantage of the ultra-low interest rate environment should contact a licensed, independent agent at Canadalend.com. The Canadalend.com agent will help clients find out what kind of mortgage they can afford, get them the best mortgage rates possible, and get them pre-approved in 24 hours.”
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.