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October 17, 2010

For a second consecutive month, housing sales are up! Could it be the low low low long-term mortgage rates that keeping sales from falling?

According to The Canadian Real Estate Association, sales in September rose 3% from August on a seasonally adjusted annualized basis — that is the highest since May 2010 — and the second straight month sales rose.

Prices have also started to stabilize; the average price of a home sold in Canada last month was $331,089, which is slightly down from the $331,683 average a year ago, and up from a August, where the average was $324,928.

“Supply and demand are rebalancing, and that’s keeping prices steady in many markets,” said Georges Pahud, CREA’s President.

Mortgage lending rates are currently helping the market. “Mortgage lending rates eased in the third quarter, which helped support sales activity over the past couple of months,” said Gregory Klump, CREA’s Chief Economist. “Interest rates are going nowhere fast, so home ownership will remain within reach for many homebuyers.”

CREA says that two-thirds of local markets last month posted sales increases led by Winnipeg, Calgary and Montreal.

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