Stats show sales and prices are picking up again across the country. The worst of the country's housing market woes appear to be past but I don’t think we are completely out of it yet.
The latest Canadian Real Estate Association data shows May resale home prices rose 0.4 percent to $319,757, topping the previous record set a year earlier. It was the first year-over-year increase since May last year. And sales activity climbed for a fourth straight month.
Regina's housing market is expected to lead major Canadian cities in year-over-year price increases, according to a new forecast by Royal LePage. In its 2009 market survey forecast released Tuesday, Royal LePage said the year-to-date average resale home price of $245,228 in the city is anticipated to rise to $254,000 by the end of 2009. This would represent a 10.6-per-cent increase from the average of $229,716 in 2008.
But the Canadian economy is still on shaky ground, contracting for the ninth straight month in April. And the jobless rate spiked to an 11-year high in May, boosted by layoffs in Ontario's manufacturing sector. Experts warn that further job losses could slow the sector's momentum.
These record low interest rates have increased affordability, but weakness in the bond market has pushed mortgage rates higher. The posted rate on a five-year mortgage at most banks has risen to 5.85 percent from 5.25 percent in April.
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