Toronto, Canada, May 26, 2016 – Canadalend.com, the leading low-cost, private mortgage solution provider in the country, is weighing in on the record April Canadian housing data. Canadalend.com is also commenting on regional variances and why it remains a great time for those considering their first homes.
According to the Canadian Real Estate Association (CREA) national home sales activity increased 1.3% month-over-month in April, setting a new monthly record. Sales were up in about three-quarters of local markets with the Ottawa region and Edmonton leading growth. Activity remains steady in the Greater Toronto Area and was down slightly in Greater Vancouver. (Source: “Canadian home sales set record in April,” Canadian Real Estate Association web site, May 16, 2016; http://www.crea.ca/news/canadian-home-sales-set-record-in-april/.)
“The Canadian housing market continues to set new records,” says Bob Aggarwal, President of Canadalend.com. “In addition to record sales activity, the average sale price increased more than 13% to a record $508,097. However, note that the data is being skewed by Toronto and Vancouver; remove those two cities from the equation and the year-over-year gain falls to a still robust 8.7%, or $369,222.”
Of the 11 major markets covered by the CREA monthly statistics, nine realized year-over-year gains. Seasonally adjusted prices in Vancouver were up 21.1%, while in the adjacent Fraser Valley, prices increased 27.9%. Prices in Toronto were up 15.8% in April, 17.2% in nearby Hamilton, 3.8% in Kitchener-Waterloo, 2.8% in London/St. Thomas, and 16.3% in Windsor-Essex. At the other end of the scale, home prices were down 3.5% in Calgary and 2.4% in Saskatoon.
“Spring, the traditionally busiest period for Canadian real estate, has translated into houses selling so quickly that inventory is at its lowest level in more than six years, at 4.7,” Aggarwal adds. “That means that at the current pace, it would take 4.7 months to sell all the homes currently on the market.”
“The strong growth of the Canadian housing market is testament to the long-term value of owning a property,” Aggarwal concludes. “With interest rates expected to remain near record lows for the foreseeable future, it’s a great time for first-time home buyers to step on the property ladder. To get a mortgage with the best rates and terms, it’s a good idea to consider an independent, licensed agent with access to hundreds of different lenders.”
Canadalend.com is one of the largest private mortgage brokers in Canada, providing its clients with residential and commercial mortgages, home equity credit, and debt consolidation, as well as addressing financing concerns.