Canada's most watched real estate boards reported August results last week which showed that the summer's existing trends continued.
Vancouver saw its benchmark home price rise 12% from a year ago as sales levels were almost 30% above the ten year average for the month.
Calgary's slump continued with sales off 27% but prices dipped only 0.9% year-over-year.
In Toronto, activity was up about 6% from last year but solid growth in new listings was welcome news for buyers.
Two of Canada's banks published housing market analysis last week. RBC's latest Housing Trends and Affordability analysis reported increasingly stretched affordability in Vancouver and Toronto while most of the rest of the country's markets were neutral.
TD's Regional Housing Report calls for activity levels and prices to level off after a significant rate drop between January and April boosted sales, especially in Vancouver and Toronto.
Statistics Canada reported stronger than expected August employment data on Friday. The Canadian economy created 12,000 jobs for the month but the unemployment rate ticked up from 6.8% to 7.0%. The Bank of Canada will announce its latest interest rate decision tomorrow (Wednesday Sept9, 2015). Most economists do not expect a change this time around.
Current mortgage interest rates remain flat, with 5-year fixed rate contract at 2.59%. This equates to a monthly payment factor of about $450/mo per $100K borrowed.
In Alberta, I am seeing absolutely sseing a reduction in first time home buyers from the oil and gas sector, perhaps down by a third.
Chris
403.909.7160
