September 29, 2010
Okay, so the recession hit and home values fell. But it looks like they’ve recovered– and then some! Home prices are now 6.4% higher than the peak prior to the recession.
According to the Globe and Mail:
Prices climbed 0.5 per cent in July from a month earlier, marking the 15th consecutive increase, National Bank said, though for the first time in four months not all regions shared in the gain. Prices in Vancouver dipped the bank noted.
So everywhere is still going up, except Vancouver. And that’s to be expected. Home prices there are CRAZY!
Now, it’s also important to note that while prices increased in July, it was a far more modest gain than in previous months. That means the overall market is slowing down. The reason for this is simple. Demand is slowing down immensely, as buyers rushed to beat the new mortgage rules and the HST on newly constructed homes, but new listings hitting the market are slowing in number as well. Hence, Canada still has a relatively balanced market (though the Globe and Mail indicates that market conditions might be on the “favourable to buyers” side of things).
But still! No bubble burst in sight yet, home prices are 6.4% above pre-recession levels. Things seem like they’re going along a-okay.