According to the Cartus Canadian Property Market Watch, the housing market in Canada remains in balance and, according to the latest Canadian Housing Outlook issued by the Canada Mortgage and Housing Corporation (CMHC), existing home sales are expected to increase moderately through the end of 2015 along with the country’s economic conditions.
“Industry forecasts call for Canada’s positive economic outlook and strong net migration to continue to drive housing demand this year and through 2015,” said Andy Puthon, president of Coldwell Banker Canada . “These strong economic fundamentals, combined with the ready availability of financing at near-record low interest rates, will continue to sustain Canada’s stable resale housing market.”
Interest Rates and MLS Forecast
Bank interest rates in Canada have remained unchanged at near-record lows since the fall of 2010. On July 16, 2014, the Bank of Canada, the nation’s central bank, issued its scheduled rate announcement, holding its trend-setting overnight rate (also known as the key interest rate) at 1 percent.
In July, the Canadian Real Estate Association (CREA) updated its MLS forecasts for 2014 and 2015. Overall, the sales level from previous forecasts remained virtually unchanged, with a slight uptick in house prices.
Canadian Property Trends Top Tip
In its quarterly outlook, CMHC calls for economic conditions in Canada to improve both this year and in 2015, with strengthening exports and business investments. As a result, increases in both employment and disposable income are expected to fuel housing demand through the end of next year, as will an expected influx of immigrants. Househunters are therefore encouraged to act fast when faced with housing decisions.
Read more in the latest Cartus Canadian Property Market Watch.