REAL ESTATE NEWSLETTER JUNE 2012
July 7, 2012
This could be the best time in a long time to buy. Interest rates are at all time lows. After a prolonged period of focus on euro zone debt, global confidence in the economy is restored.
In a recent Globe & Mail article (June 9, 2012) describing 10-year investment returns, 12 leading investment portfolio experts predicted an average long term return of only 4%, or 6% before an expected 2% inflation rate. It may be a good time to invest in real estate!
CREA, June 21, 2012
Changes to Mortgage Regulations
The Minister of Finance announced changes to the standards governing government-backed insured mortgages:
CREA has continually stressed the need to avoid changing the minimum down payment. Today’s announcement confirms Canadians will continue to be able to purchase a home with five percent down. The changes announced today will come into effect on July 9, 2012.
CREA, June 15, 2012
Wayne Moen, CREA President: "The expected continuation of low interest rates will keep housing markets stable and homeownership affordable and within reach for many buyers in the months ahead."
Activity receded in about 60 per cent of all local markets in May as compared to April.
"At the same time, national average price is finding support from Calgary, where sales and average selling prices are up from levels in May last year. Overall, price growth remains modest amid balanced market conditions in much of the rest of
No surprises from the Bank of Canada's interest rate decision this morning. The Bank opted to keep its overnight rate at 1 per cent, where it has been for nearly two years.
CREA, May 25, 2012
There are some interesting developments in price trends across housing types. The one that really stood out in April was accelerating price growth for the townhouse segment right across the board.
The recent acceleration in townhome prices in all markets tracked by the index may indicate the beginning of a shift in demand away from the increasingly expensive single family sector.
One reason for this could be that as an alternative to expensive single family homes, townhouses are viewed more favourably than apartments by families looking for housing in more centrally located areas.
CREA, May 15, 2012
"It bears repeating that the national average price was skewed higher last spring by record level high-end homes sales in Vancouver's priciest neighbourhoods, and that a replay of this phenomenon was not expected this year," said Gregory Klump, CREA's Chief Economist. "Sales data confirm that high-end activity in
Netting out both
Nationally, the number of months of inventory stood at 5.6 months at the end of April, unchanged from levels reported in March. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand.
For those who are thinking about buying a property, do not stay on the sidelines too long - the tide of good buys is here for now but that may change!
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