Real Estate Continues to Edge Toward Buyers' Market

A report released by the Real Estate Board of Greater Vancouver this week shows a 2.6 percent decline in residential property sales since July, and a whopping 36 percent decline compared to August 2009 – the second hottest August market on record.

Board president Jake Moldowan states in the REBGV release, “We’re seeing moderate demand, low interest rates and a healthy but slowing stream of supply in our marketplace, all variables that favour those looking to purchase a home. The last few months have also shown some stability when it comes to price fluctuations in the region, which is a welcome trend after reaching record highs in April.”

Vancouver and Toronto have a tendency to skew housing price data, as a columnist from the Edmonton Journal makes clear in his take down of aggregated national statistics.

In interest rate news, the Bank of Canada is scheduled to issue its latest key rate decision on Wednesday, September 8. According to the Globe and Mail, forecasts are for the benchmark interest rate to rise by 25 basis points to 1 percent.  A spokesperson interviewed by the Toronto Sun suggests “Not so fast,” as the economy slows and major banks continue to offer mortgage incentives to lure fewer home buyers. All eyes will be on central bank governor Mark Carney next week.

The best practice if you’re looking for a home is to stick to your local area data. However, markets overall look promising if you held off joining the home buying rush earlier this year.

Know before you go. Calculate what you can afford using CENTUM mortgage calculators, before you apply for a home loan.
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