The Canadian Real Estate Association released its national real estate stats for October which showed increases in home sales, new listings and prices. Most provinces and major cities enjoyed these increases except for Vancouver which is seeing decreases due to the new tax on foreign buyers.
It is too soon to tell if the tightening of mortgage rules by the finance minister has had any affect in slowing price increases and sales rates.
A slowing of price points in areas where there have been heavy increases in previous years is considered a good thing because it will positively impact affordability which will encourage more sales and stimulation of the economy.
The Canadian five year government bond yield has risen and we are already seeing increases in interest rates. This may also be caused by the federal government resent changes which affected how mortgage lending institutions secure their mortgage investments. These lenders are now sourcing new methods of securing their portfolios which are expected to cost the lender more who will in turn pass these costs on to borrowers.
First time buyers in Ontario got a boost with an increase in the First Time Homebuyer rebate. Hopefully, this will help out some new home buyers.
In the meantime, many markets including Barrie are experiencing a sellers market driven by short supply of listings. Many offers to purchase property are experiencing multiple offer situations.
For more info. click on this article written by Dominion Lending Centres chief economist Dr. Sherry Cooper. http://us7.campaign-archive1.com/?u=e22472ccf910e7bde7d3d0632&id=6ad4799db1&e=78effd522a