As reported by CREA, the across-the-country decline
was only 0.3 per cent, but many believe this downward trend will continue at
least into the new year. According to CREA, home sales declined in two-thirds
of the Canadian market, including Calgary, Halifax and Ottawa, and the Greater
Toronto Area.
As CREA
chief economist Gregory Klump says: “Sales may be starting to bottom out amid
stabilizing housing market sentiment. Time will tell whether that’s indeed the
case…”
The
national news magazine Maclean’s believes
that prices will also fall, especially in the single, detached-home market.
And, to the relief of many, Maclean’s
suggests the days of bidding wars are most likely behind us.
Market watchers
attributed the drop in home sales that initially affected Vancouver, and was
still impacting Toronto this fall, to recent measures imposed by both provinces
designed to cool overheated housing markets.
Also this fall, the
Bank of Canada increased the interest rate for the second time in two months —
which had the immediate effect of raising mortgage rates. Expectations are that
rates will continue to rise. As well, the Office of the Superintendent of Financial Institutions is considering
again tightening credit regulations. But industry pushback may put this on
hold.
What are buyers and
sellers across the country to do? With the usual slowdown in the housing market
in fall and winter combined with uncertainty on many fronts, both may be
inclined to take a wait-and-see attitude.
Or they may adopt
the position of cautious optimism espoused by some experts, who are
anticipating calmer, more balanced housing markets across the country with more
choice for buyers and sufficient profit for sellers.
After all the
instability, this may be news to take action on.
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