Most signs are pointing to a recovery in Canada’s housing market, including a strong month of June that saw sales up 75.6% in Vancouver compared to 2008. The conditions are prime for Canada to build on this momentum. For more, see the following article from Property Wire on the current environment in Canada’s real estate market.
Pent-up demand for residential property is boosting sales in Canada’s major real estate markets in what is being described as a clear signal that the sector has moved into recovery.
More balanced market conditions have emerged, effectively ending the stronghold that buyers had on the market over the past six to eight months, according to the latest report from RE/MAX.
Canada’s largest markets, Toronto and Vancouver, are leading the way with the highest sales in June, figures from the real estate boards show. Toronto sales were up 27% compared with 2008 and in Vancouver they jumped a massive 75.6%.
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This is significant according to Michael Polzler, executive vice president of RE/MAX Ontario-Atlantic who expects the impetus to continue throughout the rest of 2009, with most centers now forecasting year-end sales on par or ahead of 2008 levels.
‘The strength of the market, amid the most significant global recession in recent history once again underscores its relevance to the nation’s economic engine,’ said Polzler.
‘Canadians believe in homeownership, a fact best illustrated by the purchasers who ventured forward in recent months and snapped up some of the best real estate deals this market has seen in years. Those who chose to sit it out on the sidelines are now facing a market in transition, characterized by the threat of rising interest rates, low inventory levels, and upward pressure on housing values,’ he added.
He explained that the recent surge in resale activity can be attributed to three key factors; pent-up demand, low interest rates, and greater affordability. ‘The combination, in conjunction with declining inventory levels, has created heated market conditions in hot pocket neighborhoods, prompting a resurgence in multiple offers in June. Average prices are holding steady or climbing, days on market are down, and inventory levels continue to tighten, especially at entry-level price points,’ Polzler continued.
While sales are the leading indicator, there are other clear signals that recovery is indeed underway, according to Elton Ash, Regional Executive Vice-President of RE/MAX of Western Canada. ‘Renewed consumer confidence, albeit cautious, has been key, supported by improved economic news. In addition, we’ve seen sale price-to-list price ratios climb across the country, rising as high as 105% in some communities. Vendor incentives have also come off the table, both for resale and new housing stock,’ he said.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.