Canada’s real estate market is finding its balance; with a surge in new listings in November, it has helped ease the supply shortage and prices from a month earlier, easing fears of a bubble in the making, although the rebound in the market continued.
Economists have been looking for exactly this because a stead string of monthly price increase could inflate an asset bubble and lead to a severe correction when interest eventually rises.
We have seen in the past few months prices rising, and double digit percentage increases posted year over year.
Home sales nationally have increased 73% in November from a year ago, a time when we were in a recession. Buyers have taken advantage of record low interest rates to secure mortgages, and it shows in the sales.
It is worrying to think that purchasing home will not be an option for many people when interest rates move higher; however with the economy slowly getting better, it is expected that this goes for people’s financial situations.
We will have to wait and see what will happen as more listings are put onto the market, especially in terms of price adjustments, and whether sellers will be able to get the price they want for their house if they sell.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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