Toronto, Canada (PRWEB), February 6, 2015 – Canadalend.com , the leading low-cost private mortgage solution provider in the country, is commenting on a recent study showing that Canadian housing prices fell for the second month in a row in December. Canadalend.com is also observing that slowing housing prices, coupled with expected rising interest rates and lower oil prices, could be setting up a buyer’s market for Canadian homebuyers.
According to the Teranet-National Bank National Composite Home Price Index, housing prices declined 0.2% in December; this marks the second consecutive monthly decline, after the 0.5% drop in November. In December, prices were down in five of the 11 metropolitan markets in the Teranet survey: Halifax (−1.9%), Calgary (−1.1%), Quebec City (−1.0%), Montreal (−0.9%) and Vancouver (−0.4%). Overall, the index ended 2014 up 4.95% year-over-year, after having gained 3.8% in 2013 and 3.1% in 2012. (Source: “National Composite House Price Index,” House Price Index web site, January 14, 2015; http://www.housepriceindex.ca/Default.aspx.)
“Canadian housing prices have been robust over the last number of years as a result of the historic low mortgage rates . But thanks to uncertainty around if and when interest rates will rise in 2015 and slumping oil prices, housing gains are projected to slow in 2015,” says Bob Aggarwal, president of Canadalend.com. “An improving U.S. economy and falling oil prices could set up a buyer’s market in some regions while driving even more demand for housing in others.”
Going forward, housing prices in Canada are expected to slow in 2015 to average around 2.5%; that would bring the average price of a resale home in Canada to $419,318, versus $407,500 in 2014. More specifically, housing prices in Calgary are projected to rise 2.4% in 2015, which is less than half of what had been expected before oil prices began to slide. Housing prices in Vancouver are forecast to rise 2.8%, while Toronto will lead the country with a 4.5% increase. (Source: Pigg, S., “How plunging oil prices could impact real estate across Canada,” The Toronto Star , January 14, 2015; www.thestar.com/business/real_estate/2015/01/14/how_plunging_oil_prices_could_impact_real_estate_across_canada.html.)
“There is a chance that continued pressure on oil prices means the Bank of Canada will hold off increasing its key interest rate. This means that ultra-low mortgages could still be the norm throughout 2015,” Aggarwal concludes. “Should consumer confidence be further shaken by weak economic data, Canadian housing prices could slow even further, making property more affordable for first-time home buyers.”
Canadalend.com is one of the largest and most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. To learn more about Canadalend.com, visit the web site at www.Canadalend.com .