Canada’s housing market cooling off
The CREA says a cool-down in the national housing market is happening in advance of new mortgage rules set to come into effect April 19th. Here in BC there was a heavy drop in activity, partly offset by a Toronto market that’s still hopping. It will be interesting to see if this is a trend, or a blip caused by the winter games.
Meanwhile, the number of new listings — an indication that homeowners are looking to capitalize on demand — climbed 2.4 per cent, marking the fifth straight month that housing supply grew. The amount of housing inventory in February stood at 5.2 months, well below where it was a year ago, at 8.8 months, but on par with 2008 levels.
“Headline price increases are drawing new supply to the market, and so that’s taking some steam out of the market,” said Gregory Klump, CREA’s chief economist.
The average price of all homes sold in February through the MLS system was $335,655, CREA said, up a robust 18.2 per cent from a year ago.
However, CREA said the gain was smaller than in the past four months — down from the January increase of 19.6 per cent — and future increases are expected to become “further subdued” in the months ahead.
“Time will tell how normal the market becomes, but I think there are pretty clear signs that some self-correcting mechanisms are starting to take over and lead to a calmer market, compared to what we saw in late 2009,” said Douglas Porter, deputy chief economist at BMO Capital Markets.
Joycer points out that RBC has also released their affordability report, you can read the PDF here. They make some comments specifically about the BC market:
While still below their recent cyclical peaks, all RBC measures stand well above long-term averages. Such poor affordability levels represent an element of risk that could weigh heavily on markets when interest rates start rising.
March 19th, 2010 at 11:34 pm
Homeowners Association Management:- Yes, the market is cooling, because all the Canadians are buying in the USA.
March 16th, 2010 at 9:03 pm
"That would send fertilizer, coal, mining, gold and silver on a one way rocket to the moon. Better load up boys and girls."
In terms of the USD yes, but in terms of CAD it would likely stagnate or move down (depending on the commodity).
March 16th, 2010 at 8:56 pm
@Prca: I keep my girl with me to do the job i want for my pleasure.I just want to make it clear that comment you had response is about freedom of expression,like any other sector sex is also a part of our life for proper growth.In other words, a person should be healthy physically,mentally,and sexually and kissing some one on the street is better than beating someone on the street.You shouldn't be send to prison for month for kissing.In respect to all that Vancouver is best City to live in you can't see gay lessbian parade in Dubai,If there is one that would be in life time prison.
By the way,Do you own any condo in Dubai?
I know Donald Trumph and his investors do own a unit or two.Maybe or maybe not this pair in prison for month is one of them.
March 16th, 2010 at 8:52 pm
Mar 1, 2010 = 12255
Mar 15, 2010 = 13755
Mar 16, 2010 = 13778
March 16th, 2010 at 8:50 pm
An impassioned argument, from an immigrant's perspective, that demand for Vancouver is and will remain overwhelming, has been archived at VREAA.
“I was one of the unlucky 15 million people born into the city that ranks among the bottom 10 in the annual most-livable cities in the world survey. Then, quite magically, later in my life, I find myself among the lucky couple of million that live in the metropolitan region that is consistently on the top of that same list.”
http://wp.me/pcq1o-BH
March 16th, 2010 at 7:49 pm
@Best place on meth: 38
X Best place on meth Says:
March 16th, 2010 at 12:44 pm
@Supraboy:
Please Mr. Jurock, that’s enough already.
If you don’t stop I am going to call the Simon Wiesenthal Centre and tell them where your dad is hiding.
ReplyCurrent score: 9
++++++++++++++++++++
How in the hell do you come up with these comebacks? Too funny!!!!
March 16th, 2010 at 7:39 pm
@Dr. Know Nothing:
Wow, if a 60% sell/list is what you consider a great day for the cheerleaders then you really are fucked.