Kiyoko Fujimura

Buzzbuzzhome Corp.
March 30, 2010

Calgary homebuyers are racing to beat the rate hikes…and many of them did! RBC and TD raised their five-year fixed mortgage rate, a benchmark rate, 60 basis points. That act is basically market experts yelling at us that “THE BANK OF CANADA IS RAISING RATES”.

So clever Calgarians jumped in while interest rates were still low:

MLS sales in the single-family market in Calgary were 1,252 month-to-date, with an average price of $469,859. Sales are up by more than 15 per cent from March 2009 and the average price is up nearly $50,000, or 12 per cent from last year. In the condominium market so far this month, MLS sales were 537 for an average price of $298,019. Sales have increased by more than 20 per cent from a year ago and the average price is up almost five per cent. The Vancouver Sun

If the average prices remain at this level, they will be at their highest level since June 2008. More colloquially, a Calgarian agent said that she has noticed an increase in the number of bidding wars in the market.

The increased purchasing rate is expected to continue into the spring as buyers become increasingly fearful of higher rates.

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