Toronto, Canada, August 27, 2015 – Canadalend.com , the leading low-cost, private mortgage solution provider in the country, weighs in on strong July existing home sales data and what inevitable interest rate hikes will do to the Canadian housing market.
“The Canadian housing market continues to perform well with the Teranet house price index increasing 1.2% month-over-month in July and 5.2% year-over-year,” says Bob Aggarwal, President of Canadalend.com. “While July is a traditionally slower month for national real estate sales, the composite index of housing prices from major centres across the country is at an all-time high and up 5.1% in the last year.” (Source: housepriceindex.ca, index, “Teranet – National Bank National Composite House Price Index,” August 8, 2015; http://www.housepriceindex.ca/)
Aggarwal explains that July tends to be a slower month when it comes to home sales because many people are on vacation. Regardless, at 2.1%, July month-over-month sales were exceptionally strong across the country, especially when you consider analysts were forecasting a much more modest 0.7% increase.
Despite the strong monthly and annual increases, the upward trend is not equal across the board. Most of the gains were driven by demand in Ottawa, where prices were up 2.2% month-over-month, and Toronto (+2.3%), Hamilton (+2.7%), and Vancouver (+1.5%). Housing prices were actually down in five Canadian cities; including Calgary (-1.9%), Edmonton (-0.7%), Winnipeg (-0.4%), Montreal (-0.63%), and Halifax (-0.57%).
“With housing prices defying expectations, many are predicting the Canadian housing market will experience a serious correction. There are many reasons why I believe these fears are overblown,” Aggawal adds. “When the Bank of Canada starts to raise interest rates it will do so gradually. This will help cool the housing market and protect home prices from a sharp downward correction. On top of that, the Canadian housing market will find additional support from an improving economy.”
Aggarwal concludes that first-time home buyers looking to take advantage of ultra-low interest rates, or those wanting to refinance, should contact a licensed Canadalend.com agent. “Since they’re independent, a Canadalend.com agent can draw from hundreds of different lenders, getting their clients the best financial products at the best rates,” he says.
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addressing financing concerns. To learn more about Canadalend.com, visit the web site atwww.Canadalend.com .