As stated in this article in the Vancouver Sun, the Canadian Real Estate Association has come out with new data for August showing home sales had increased 4.1% from July. This appears to indicate that the market is fairly stable for properties and sales, despite the numerous mortgage lending restrictions imposed upon the market over the past year in an attempt to protect the real estate market.
On less of a “bright” note, home sales were down 22.5% from August of a year ago. The article has many “experts” making predictions that housing sales are going to slow even further in the upcoming months. They primarily use the reasoning that mortgage rates are going to increase and will make lending even more difficult.
It is my perception that last August was a fairly busy period in the housing markets, particularly compared to historical numbers. There were grumblings by my associates and mortgage clients that it was a sellers housing market at that time, which tends to mean a lot of housing sales. Also, September is generally the start of a busier period for real estate, which usually runs through November.
Also, the residential mortgage rates have recently declined significantly, following similar decreases in the bond market. Fixed mortgage rates are back at the lowest ever rates.
Additionally, despite many chicken-littles out there, the sky is still not falling, and neither are real estate prices, which were statistically on par with the previous month.
The market appears to be remaining stable, and with a the busier autumn season now here, it is my prediction that you will see another month of increased sales compared to August.
A good question that you as a reader of my website should be asking yourself is “Do I really want a hot real estate market?” Presuming that you are planning on purchasing a property, the answer should be “not until I have bought.” The main consideration for this is not even prices. Prices will go up, and sometimes they will even go down. However, many of my mortgage clients have been in the market at the same time everyone else was and it was a frenzy trying to find a great deal because there was so much competition out there for the same place. However, right now, while there is still some, and everyone is always looking for a great deal, there is much less competition out there for properties than there has been over the past few years, and there is a much better chance for you to get the ideal property you are looking for, and get a mortgage rate that is very low at the same time.
Why not take advantage of these great conditions for purchasers. Simply fill out the form below with your name and contact info and we can get started on getting you a home.