An increase in sales across Canada and is the best sign yet that the country’s real estate market is well on its way to recovery.
Amid the month-to-month torrent of real estate statistics, economists pegged particular significance on new numbers because they reveal widespread strength at strong prices and showed mounting momentum over a three-month span, carried by what had been the weakest region – the West.
It’s a radically stark contrast with the United States, where prices – after three long years – are still falling, down a third from their bubble peak.
In Canada, buyers are back, sales are surging, and prices are edging up.
“People thought the world was coming to an end,” said Mr. Stewart, a top-selling agent at his Century 21 office near False Creek in downtown Vancouver. “Now, the fiscal stimulus and ultralow interest rates have supercharged real estate.”
Almost 150,000 sales of existing houses and condominiums were tallied in the April-May-June period, according to Canadian Real Estate Association data published Tuesday. It was the fourth-best quarter ever since CREA began recording the sales data in 1994, the industry marketing group said.
Economists and brokers credit the low interest rates and, in hot markets such as Vancouver, somewhat lower house prices. Another key factor is pent-up demand from buyers who icily avoided major purchases during what seemed like an unfolding economic apocalypse in the fall and winter.
Nationally, for the April-June period, sales were up 1.4 per cent from a year ago. It was the first quarter that marked a year-over-year advance since late 2007, and the period strengthened as the spring warmed. In June, sales were up 22.8 per cent nationally – and prices climbed 4 per cent. In Toronto, the sales jump was 27.4 per cent, with prices up 2 per cent.
Sales of existing houses are predicted to stay steady, rather than keep surging, a new-found balance between boom and bust.
“Sales activity is not going to return to very low levels,” said Gregory Klump, economist at the Canadian Real Estate Association.
“By and large, sales activity will remain strong. I just don’t anticipate that these increases are going to play out month over month over the rest of the year the way they have in the last few.”
Source: Globe & Mail
July 30th, 2009 at 3:20 pm
It’s sure good to hear positive news in the real estate industry.
August 6th, 2009 at 11:04 am
I hope this makes more people realize that while Canada is affected with what happens to the US, our economy is not as closely “tied” to theirs as most people think. I also wish that this growth, while it remains strong, won’t be as crazy as what happened in the last boom, as such types of growth is just not sustainable. Better to grow slow and steady than grow fast and fall flat.
June 15th, 2010 at 3:30 pm
Yes positive news is great when it comes to Real Estate. I do think that the Canadian real estate market is a lot different then the US market in the fact that the banking systems are so very different.
June 15th, 2010 at 3:33 pm
Canada has more government control and standardized lending rules that are followed by all Canadian lenders. In the US the lenders can come up with their own guidelines so the government has alot less control over the types of mortgages and borrowing allowed.
August 25th, 2010 at 9:15 pm
I believe that with the new mortgage regulations that have been implemented, the market can only florish in the long haul. And yes we might see some form of stabalization but not a correction.