Rising interest rates on the long end of the mortgage market are just one more catalyst for a spring housing market expected to reach a fever pitch.
Throw in new mortgage rules in effect April 19 that will make it tougher to borrow in some cases, a new harmonized sales tax in Ontario and British Columbia on July 1, and a likely Bank of Canada hike in short-term interest rates, and buyers are getting panicked.
Inventory levels remain low across the country, even after three straight months of supply slowly building. In February, the Canadian Real Estate Association said there were 4.7 months of inventory in the system on a seasonally adjusted basis, based on the rate of sales. That is a near-record low.
While sales activity in February actually dropped 1.5 per cent compared with January, year-over-year sales for the first two months of 2010 were up 44.2 per cent.
Low supply and strong demand continue to goose prices, with the average home selling for $328,440 this year, an 18.2 per cent jump from a year ago.
In the greater Toronto area, figures for March released Tuesday show the average sale price soared to $434,696, a 20 per cent jump from a year ago. Sales in the GTA jumped almost 70 per cent compared with last year. [full story-->]
How can I help?
_______________________________________________________________
b r i a n m a y e r real estate sales representative
Royal LePage Your Community Realty Brokerage
independently owned and operated
187 King St. East Toronto, ON. M5A 1J5
(416)-637-8000
Helping You is What We Do.
A referral remains the highest compliment I can receive.
Comments