Monday, October 31, 2011

Canadian housing market remains resilient

Tea-leaves-housing-bubble
Canadian homebuyers remain unshaken by the recent volatility during the last few months in global financial markets, according to data released this week by the Canadian Real Estate Association (CREA) and 
Canada’s Housing Market Update 
from RBC Economics Research. Home resales rose modestly by 2.7% in September overall in Canada, after staying relatively flat in August (relative to July), with the majority of provincial markets posting gains.

Housing markets continue to be generally balanced across the country – CREA indicated that the sales-to-new listing ratio was in the ‘balanced zone’ in two-thirds of local markets, and the remainder was evenly split between markets where conditions were favourable to sellers and buyers.

The resilience of Canada’s housing market in August and September, at a time when renewed turmoil in global financial markets raised concerns that this might spook homebuyers, is reassuring on many levels. In general terms, it speaks volumes to the continued strength of the market’s underpinnings –  balance between demand and supply, positive employment trends, and low interest rates. But perhaps more importantly, it says much about the confidence Canadians continue to have about making a major purchase and the financial commitment that comes with it.

While further global anxiety could unsettle homebuyers, we believe that the confidence Canadians have expressed to this point indicates that they are placing a greater focus on domestic economic conditions and market fundamentals than the volatility taking place outside of Canada’s borders.

If you are thinking of buying or selling a property please call me today!

TREVER FLORKO - Realtor
Century 21 Assurance Realty Kelowna
Cell: (250) 859-5990
Office: (250) 869-0101
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