The unsinkable Canadian real estate market appears to be just that, with new numbers pointing to continuing price growth in the country’s biggest market, despite fears of a correction.But not so fast, brokers, that could be bad news for your business.
Numbers released by Statistics Canada this morning reveal prices of new homes were up 0.2 percent in August, the 17th month in a row prices have increased. The numbers come as a surprise to some, surpassing the .01 per cent growth projected by market analysts. Still, the report did not include condominiums, which have seen prices fall, not rise this summer.
Outside that key segment of the market, Toronto and Calgary showed particular strength; the Toronto-Oshawa metropolitan region was up 0.3 percent in August from July, as was Calgary. While the increase was attributed to market conditions in the Toronto region, increased construction, material and labour costs were the cause of Calgary’s spike, said local builders.
Still, the continuing rise in home prices isn't necessarily good news for brokers, many now sitting on a mountain of preapprovals as clients wait for prices to drop. These new numbers indicate that the wait will likely continue for many of those mortgge professionals as sellers hold off on price drops.
For August, price increases were recorded in 10 metropolitan areas, and were 2.4 percent higher in August 2012 year-over-year. Quebec saw the biggest increase, with prices up 0.6 percent. Prices fell in Victoria and Charlottetown (0.4 percent and 0.1 percent respectively), and remained steady in nine of the areas surveyed.