As recently reported by the Canadian Real Estate Association (CREA) the number of homes sold across Canada via the MLS system fell by 6.2% in May 2017 compared to April 2017. The month over month percentage decline was the largest since August 2012. Toronto had the greatest decline at 25.3% while some markets such as Ottawa, Calgary and Edmonton saw increased sales in May 2017 compared to May 2016. This latest report indicates a more balanced and healthy housing market.
Interest rates are still very low but based on recent comments made by the Bank of Canada Governor Stephen Poloz, rates might not stay this low for much longer. "The interest rate cuts the Bank of Canada made in 2015 have largely done their job as the economy appears to be gathering momentum" the head of the central bank said. The Canadian dollar also strengthened to a two month high against its US counterpart after Mr. Poloz comments only to see it weaker due to lower oil prices.
Of course no one knows for sure when and if rates will rise and to what extent but with a healthier broad based Canadian economy growing at an annual rate of 3.7% during the first quarter, employment numbers suggest the economy has recovered from the recession that followed the decline of oil prices.
With a more balanced real estate market and current low interest rates, this summer might be the best time to lock in your interest rate while shopping for your first dream home or the next dream home.
With mortgages becoming more complicated over the last 12 to 18 months, it's no wonder that mortgage brokers are becoming the preferable option when looking for the right mortgage. Mortgage brokers now arrange 55% of all first-time homebuyers.
As your mortgage professional, my role is to work with you to get the most out of your mortgage. Call or email me today.