See what’s in store for Vancouver’s house prices this year

The Canadian housing market is calming rather than crashing, as the impact of tougher mortgage rules and cooling credit is partly offset by the supportive influence of low interest rates and continued income growth, according to a new report from BMO Economics.

“House prices have hit record highs in most regions across Canada, though the rate of appreciation has slowed,” said Sal Guatieri, Senior Economist, BMO Capital Markets.

Resale markets are largely balanced, though buyers have gained leverage in some provinces, including Quebec and British Columbia.

Steadier prices are expected in the year ahead amid decent job growth. A benign outlook for rates and income should support affordability this year, weighing towards relatively steady sales and prices in most regions.

Canadian Housing Market Balanced Mr. Guatieri noted Toronto house prices, though slowing, hit a record high in April; gains in the detached market more than offset slightly lower condo values. Alberta enjoyed decent price gains, while Vancouver’s prices have declined moderately.

“Nationwide, housing starts have adjusted to the reduced demand, returning to household formation rates,” Mr. Guatieri added. “Meantime, Toronto continues to build up rather than out to meet supportive demographic demand.”

BMO Housing Confidence Report found that nearly half of Canadian homeowners (48 per cent) intend to buy a property in the next five years — mostly unchanged from fall 2012 — signalling a high level of confidence in Canada’s housing market is continuing into 2013.

Laura Parsons, Mortgage Expert, BMO Bank of Montreal, noted that it is essential for both buyers and sellers to be aware of any changing conditions on the local level. “If planning to buy or sell a property, consider working with an expert who can help you make decisions that are appropriate to the health of your local market, and more importantly, that responsibly fit within your particular financial situation.”

Source: MarketWire, Vancouver Sun

One Response to “See what’s in store for Vancouver’s house prices this year”

  1. penny Says:

    There is no doubt that interest in Alberta’s real estate investment opportunities continue to increase. While everyone is taking a wait and see attitude before investing in real estate properties here, the Chinese seems to be taking a keen interest in Canada’s real estate industry because of the gas and oil industry investments in Alberta. Add the stringent policies imposed by the government for mortgage borrowers and you get investors who are becoming more cautious about their investments. It is important to get to know your market and get the two-cents’ worth of your realtors at before you invest your hard earned money.

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