TREB has released its latest Monthly Resale Market report May 3rd and reports transactions for April 2012 increased 18 percent in comparison to the same time last year. The report goes on to say listings of detached homes led the charge with a 22 percent increase. But, the growth in listing detached homes has not kept up with the demand for it. The condominium market is said to have seen only moderate growth as it is supplied. The report also discusses current and future interest rates being a positive factor for sales for the rest of the year.
This observer sees a tightening of the market due to borrowing cost being affordable with high ratio mortgages having the same interest rates as conventional ones. The Bank of Canada governor Mark Carney recently signaled that interest rates will rise. With that clear indication its probable the demand for housing will increase in the short to medium term as buyers want the lowest rates possible.
Buyers should expect to see multiple offer situations and increase asking prices. With inflation increasing faster than anticipated by the government, perhaps the rate hike will be small and gradual. For sellers the state of the market remains favorable so long as the vendor does not over price their property they should see a big payday quickly.
By Todd Lee