The Canadian Real Estate Market: Stability Returns
After months of steady decline, the Canadian real estate market is beginning to show signs of returning stability. While the state of the market is still on a general downward turn, its rate of decline has decreased in recent weeks and certain sectors are showing signs of recovery. While complete stability will take quite some time yet to achieve, the recent changes and trends are certainly positive.
While the seasonally adjusted number of transactions on existing homes on the Canadian real estate market is still significantly lower than the equivalent number from 12 months ago, such transactions have been steadily on the rise over the past three months. In fact, the latest figures show that the year-over-year declines are the smallest that they have been in the past six months.
Moreover, with lower housing prices and low interest rates, buyer interest is increasing in housing markets across the country. This is particularly true for first-time buyers who, in past years, were often scared off by bidding wars and ever increasing housing prices.
Since the economic downturn, prices have fallen significantly and mortgage rates have been lowered in an attempt to entice borrowers. The result has been increased affordability even in some of the hottest locations such as Vancouver. In other words, this is turning out to be an excellent time for first-time buyers to purchase property on the Canadian real estate market.
Canadian real estate experts believe that this favourable trend of market stabilization will likely continue throughout the month of April. This is partly due to the fact that Ottawa will be providing incentives such as the First Time Buyer Tax Credit. Another factor that will help the Canadian real estate market's continued stabilization is the decrease in the number of new listings. While this number is currently still quite high, it has been on the decline. The seasonally adjusted number of new listings on the Canadian MLS in the first quarter was 6.4 per cent below that of the final quarter of 2008.
At the same time, selling activity is on the rise, particularly in British Columbia and Ontario which saw respective month-over-month increases of 13.6 per cent and 10.5 per cent. This increased activity in combination with the decrease in new listings is leading to an improved balance between supply and demand in Canada's largest real estate markets, namely British Columbia, Alberta, Ontario and Québec.
While a true restoration of such a balance and full stabilization will take time, the recent numbers and trends make it clear that stabilization is at least making a much-welcome return to the Canadian real estate market.
While the seasonally adjusted number of transactions on existing homes on the Canadian real estate market is still significantly lower than the equivalent number from 12 months ago, such transactions have been steadily on the rise over the past three months. In fact, the latest figures show that the year-over-year declines are the smallest that they have been in the past six months.
Moreover, with lower housing prices and low interest rates, buyer interest is increasing in housing markets across the country. This is particularly true for first-time buyers who, in past years, were often scared off by bidding wars and ever increasing housing prices.
Since the economic downturn, prices have fallen significantly and mortgage rates have been lowered in an attempt to entice borrowers. The result has been increased affordability even in some of the hottest locations such as Vancouver. In other words, this is turning out to be an excellent time for first-time buyers to purchase property on the Canadian real estate market.
Canadian real estate experts believe that this favourable trend of market stabilization will likely continue throughout the month of April. This is partly due to the fact that Ottawa will be providing incentives such as the First Time Buyer Tax Credit. Another factor that will help the Canadian real estate market's continued stabilization is the decrease in the number of new listings. While this number is currently still quite high, it has been on the decline. The seasonally adjusted number of new listings on the Canadian MLS in the first quarter was 6.4 per cent below that of the final quarter of 2008.
At the same time, selling activity is on the rise, particularly in British Columbia and Ontario which saw respective month-over-month increases of 13.6 per cent and 10.5 per cent. This increased activity in combination with the decrease in new listings is leading to an improved balance between supply and demand in Canada's largest real estate markets, namely British Columbia, Alberta, Ontario and Québec.
While a true restoration of such a balance and full stabilization will take time, the recent numbers and trends make it clear that stabilization is at least making a much-welcome return to the Canadian real estate market.
Labels: Real Estate
posted by VancouverResidence
