Dr. Sherry Cooper is Dominion Lending Centres’ Chief Economist, and in her latest blog post, she looks at the recent mortgage rule changes, current market trends, and even the effects of the US Presidential election that could be felt here in Canada.
It looks like more and more people are taking advantage of the high housing demand in our area, as the number of houses that were listed in October rises, as expected.
NEW LISTINGS EDGE UPWARD
The number of newly listed homes climbed 1.7% in October compared to the prior month. Led by a marked increase in the GTA, new listings increased in about 60% of all local markets. Housing inventory has been in acutely short supply in the GTA. The rise in new listings last month supported a rise in sales in the GTA and nationally.
The national sales-to-new listings ratio at 62.9% in October, compared to 62.4% in September. A ratio in the range of 40%-to-60% is considered generally consistent with balanced housing market conditions. Above 60% is considered a sellers’ market and below 40%, a buyers’ market.
The sales-to-new-listings ratio was above 60% in half of all local housing markets again last month–the vast majority of which continued to be in British Columbia, in and around the Greater Toronto Area and across Southwestern Ontario. Quite importantly, the ratio remained out of sellers’ market territory, down to the mid-50% range in Greater Vancouver, after having begun the year at a whopping 90%.
The Provincial Government has also introduced an increase in the Land Transfer Tax rebate that is eligible to first-time home buyers in Ontario. This rebate has been increased from $2000 to $4000, giving a bit of relief to their budgets.
Of course, our office is always here to answer any questions that you might have about mortgage financing, and the new rule and rebate changes. In addition to helping you with your mortgage, Tracy and our team can work with you to find long-term solutions to help you reach your goals. Please visit our Contact Us page to reach out to our office, or request a call.
Dr. Sherry Cooper is an award-winning authority on finance and economics with over 30 years of bringing economic insights and clarity to Canadians. Her full article, “October Home Sales Edged up in Canada, but Declined again in Vancouver” can be viewed here.
