September 11, 2009
The turnaround in the Canadian housing market over the last couple of months has been so remarkable that some are questioning whether if it is sustainable. A survey recently released by Royal LePage Real Estate Services Ltd. found that over a quarter of its agents didn’t believe the current strength can continue. 1153 agents and brokers were surveyed across Canada and asked whether they thought the housing market’s recent performance was sustainable, 61% said yes, 28% said no and 11% didn’t know.
Among the agents who replied that the market is not sustainable the majority (66%) said the inevitably of climbing interest rates will arrive to spoil the party.
Canadian housing sales shot up 18.2% in July from a year ago and it appears likely that 2009 will be a record breaker with regard to volume of sales. This incredible reversal comes after a the market was almost completely frozen over in the winter and January sales at a decade low.
Check out the below Graph from Teranet – National Bank of Canada showing the bottoming out of Canadian Real Estate Prices: