With Canada’s economy showing signs of recovery, many think 2015 will be the year the Bank of Canada starts to raise its overnight lending rate, which directly impacts interest rates.
Past News ReleasesRSS
Toronto, Canada (PRWEB) January 02, 2015
Canadalend.com, the leading low-cost, private mortgage solution provider in the country, is weighing in on recent data showing Canada’s housing prices increased almost six percent year-over-year to $413,649.
According to the Canadian Real Estate Association (CREA), housing prices climbed higher in November 2014, with the average price of a home sold that month being up 5.7% year-over-year at more than $413,000. The robust housing data continue to be skewed higher by Toronto and Vancouver, the country’s two biggest housing markets; when these two cities are removed, the average price drops to $331,743, an annual gain of approximately five percent. (Source: “Canadian home sales hold steady in November,” Canadian Real Estate Association web site, December 15, 2014; http://creastats.crea.ca/natl/index.htm.)
“After a quiet start to the year, the Canadian housing market has experienced marked improvement. While Vancouver and Toronto continue to attract most of the attention, it’s important to note that price changes varied from west to east,” says Bob Aggarwal, president of Canadalend.com. “Prices were up between 1.6% and 2.8% in Victoria and Vancouver Island, up by less than one percent in Saskatoon and Ottawa, unchanged in Greater Montreal, and down by less than one percent in Moncton.”
Aggarwal explains that despite the variances and solid annual growth, Canada’s housing market remains balanced. The national sales-to-new-listings ratio was 56% in November; a sales-to-new listings ratio between 40% and 60% is consistent with a balanced housing market. A reading above this range indicates a sellers’ market, while a reading below this range suggests a buyers’ market.
Going forward, the CREA increased its sales forecast for 2014 and 2015. It now expects 481,300 homes to sell in 2014, up from a September estimate of 475,000. If this target is reached, it would represent a year-over-year increase of 5.1% and be the highest level since 2007, when Canadian housing hit a record high. In 2015, the CREA predicts sales will total 485,200 homes, up from a previous forecast of 473,100. (Source: “CREA Updates Resale Housing Forecast,” Canadian Real Estate Association web site, December 15, 2014; http://crea.ca/crea-updates-resale-housing-forecast-9.)
“With Canada’s economy showing signs of recovery, many think 2015 will be the year the Bank of Canada starts to raise its overnight lending rate, which directly impacts interest rates. For first-time home buyers, any increases are expected to be small, and homeowners who have fixed-rate loans and mortgages will be insulated from any increases,” Aggarwal concludes. “Whether someone is looking to get onto the property ladder or considering a second mortgage, now is a perfect time to call the independent, licensed mortgage experts at Canadalend.com.”
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 financing concerns.