Housing market may see another good year

October 8, 2009

Below is an article by JAY BRYAN, The Gazette October 7, 2009:

“Cost of paying off a typical home has fallen to less than 28 per cent of an average income.”

Homes in Canada are near their most affordable in nearly four years, setting the stage for a continuation of today’s perky real-estate market through the coming year.

At least, that’s the opinion of economist Pascal Gauthier at the Toronto-Dominion Bank, who calculates that the cost of paying off a typical Canadian home has fallen to less than 28 per cent of an average income, down from a peak of 32 per cent just before the market slumped last year.

Read the whole article here.

Declining sales – a sign of market top?

The monthly sales tracked by Brian Ripley  showed the August month-over-month sale declined significantly from July’s sales. Is this a sign that the housing market has reach the top, or is the declining sale due to seasonal reduction in sales activities during the 3rd and 4th quarter of the year?

A recent TD article “Hot housing market could trigger rate hikes” following the recent Central Bank of Australia’s interest rate hike could further dampen the hot Canadian housing market.

The current metro Vancouver housing market is a “Seller market”, with tight supply and strong demand from home buyers. At under 2.5 months supply of homes, re-balancing of the market will not happen anytime soon until the supply reaches around 6 months of housing inventory.

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