With a real estate market that’s had its share of ups and downs in recent years, it’s important for every homeowner…and every home buyer and seller…to be aware of the most current trends and statistics, as they have a significant impact on the value of your current home as well as any properties you may be interested in buying or selling.
The good news is, the Canadian real estate market started 2010 with a 19.6 percent increase in prices, according to the Canadian Real Estate Association (CREA). The average house price surged to $328,537 in January, compared with $274,711 a year ago. Although home resales dipped 2.8 percent on a seasonally adjusted basis, says CREA, home resales activity year over year was still up 58 percent on an unadjusted basis from a year earlier.
That said, despite a strong domestic economy and the addition of 285,000 jobs since the recession eased in July 2009, economists predict the market will cool somewhat based on several factors, including:
- The July 1 harmonized sales tax in Ontario and British Columbia
- Expected rate hikes for the second half of the year
- Rising inventories of available homes, which recently rose to 5.3 months, the highest level since May 2009
- Higher borrowing costs and stricter mortgage rules, including a ruling by Finance Minister Jim Flaherty requiring borrowers to meet standards for a five-year fixed-rate mortgage
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