From the Vancouver Sun: Home sales this August were up 117% from last year. Things were certainly booming again this summer, the Vancouver real estate market appears to defy all common sense. Something in the water? A rush to beat the HST? A huge underground economy? Or are things just different here, this time?
“Canada’s housing market has taken its cue more from the Great Houdini than the bear (economist Noriel) Roubini, fully escaping from the clutches of a potentially lengthy, harsh downturn,” said BMO Capital Markets deputy chief economist Doug Porter.
“Record-low borrowing costs combined with the growing realization that the economic storm is passing have fuelled the remarkable turnaround. However, the gaudy sales growth will be tough to maintain now that prices are moving higher again.”
Resale activity rose from year-ago levels in about three quarters of local markets. Year-over-year gains of 117 per cent in Vancouver, 27 per cent in Toronto, 17 per cent in Calgary, and nine per cent in Montreal contributed most to the national increase in activity.
Well, there you have it. Mr. Porter has declared the good news: we’ve fully escaped from the clutches of a potentially lengthy, harsh downturn. Now we have nowhere to go but up!
Time to capitulate?