Teranet-National Bank house price index rose by 0.4 per cent from December, beating analysts’ expectations...
Today 'The Globe and Mail' reports that Canadian home prices rose by more than economists expected in January, reaching a new high.
The 0.4-per-cent increase from December marked the strongest jump in prices during the month of January since 2010, according to data from the Teranet-National Bank house price index. The gain compares to an increase of less than 0.1 per cent during December, while home prices had ticked down in November.
The country’s home prices are being closely watched as international experts continue to debate the degree to which the housing market is overvalued.
The federal government has taken numerous steps to cool the market in recent years, in an attempt to steer it towards a so-called “soft landing” in which it gradually loses some steam while avoiding a crash. Finance Minister Jim Flaherty tightened the rules for mortgage insurance in July of 2012, making it somewhat harder for many consumers to get a mortgage, and both he and the central bank appear to be more comfortable with the state of the market now than they were then. A number of economists are also confident that a soft landing is being achieved.
This week’s federal budget noted that “the government continues to implement measures to increase market discipline in residential lending and reduce taxpayer exposure to the housing sector.” Mr. Flaherty has cut the amount of portfolio, or bulk, insurance that Canada Mortgage and Housing Corp. can sell this year to $9-billion from $11-billion. The Crown corporation will be allowed to guarantee up to $80-billion worth of National Housing Act mortgage backed securities this year, down $5-billion from the prior year’s limit, and up to $40-billion of Canada Mortgage Bonds, a $10-billion reduction from the prior year’s limit.
The tightening of the mortgage market rules has impacted home sales, but economists continue to be surprised by the degree to which prices are holding up.
“While regional differences exist, Canada’s housing market generally continues to hold firm,” Krishen Rangasamy, an economist at National Bank, wrote in a research note.
Read the full article in The Globe and Mail.
Locally within Whitby and Brooklin, January is off to a quick start. There is high demand for homes priced below $400,000. Most Ajax, Whitby and Brooklin town houses and detached homes in this price range are sold with multiple offers. For more information about the housing market in Durham Region, please contact me. If you are an existing homeowner and are thinking about a move, I can tell you what your house or condo is worth in today’s marketplace.
Randy Miller
Sales Representative
Re/Max Rouge River Realty Ltd., Brokerage
905-668-1800 or 905-427-1400
randy@randymiller.ca
www.randymiller.ca
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