The average overall price of houses compared to last year in February is still 18.2% higher. According to the MLS stats the national average of sales dropped 1.8%. That is due mostly to Vancouver’s drop and Toronto’s booming market. I believe that we have such booming markets across Canada that it has to come down at some point. Many real estate analysts are predicting an increase in sales before the HST and interest rates are due to increase.
I still believe we will see a drop in sales and the market will have a plenty of inventory toward the end of the third quarter. Many people will want to sell their homes in this hot Toronto market and get out of their higher mortgages of the past to secure a lower percent before the rates go up.
It only makes sense. Buy a new house and get into it for lower Mortgage rates.. Cheaper rates now mean more money later. Another factor now plaguing buyers are the new mortgage rules that are set to be imposed April 19.
These new mortgage rules will surely change the way we get our mortgages approved. Some say it will secure the markets in the future and avoid a future pitfall in our economy. Personally I don’t believe that is totally possible because we are such a global economy now. We can prevent a totally destruction of our economy to some degree but overall we would still see a decline if the world has a recession like it happened two years ago.
Well like I said before I believe this is the time to buy property. The money is cheaper than it is going to be and the restrictions are not as tight as they will be in a month. So what are you waiting for. Call me to help you look for a house and sell your current one. erniearrizza.com