Remember when you could have picked up a good piece of Real Estate for a Song - And Didn't?
Housing starts in Canada are expected to rebound in the second half of 2009 and will reach 141,900 for the year. Starts will increase to 150,300 for 2010, according to the Canada Mortgage and Housing Corporation (CMHC).
"Economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year", said Bob Dugan, Chief Economist for CMHC. "In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen."
Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction.
Existing home sales, as measured by the Multiple Listing Service (MLS®), have rebounded strongly since January and will reach 420,700 units in 2009 and remain close to that level at 419,400 units in 2010. The average MLS® price is expected to moderate to $301,400 in 2009 and to increase to $306,300 in 2010. MLS® data are for 10 provinces.
The Bank of Canada will leave its key interest rate unchanged and restated its commitment to holding this rate steady until mid-2010, conditional on the outlook for inflation. In its statement the Bank declared that “recent indicators point to the start of recovery in major economies, supported by aggressive policy stimulus and the stabilization of global financial markets.”
Lenders are expected to keep their prime lending rate steady. Variable-rate mortgages, variable-rate credit cards, and home equity lines of credit are typically linked to a lender’s prime rate.
However, in recent weeks the pricing of new variable-rate mortgages in relation to the prime rate has improved, especially in the case of 3-year and 4-year variable products.
While pricing for fixed-rate mortgages is not directly affected, rates on certain fixed products have been declining recently.
WHY WAIT??
MORE PEOPLE ARE BUYING AND SELLING WITH JOANN VISARETIS NOW! 416-464-1200 BOOK YOUR APPOINTMENT TODAY. LET ME HELP YOU!