While 2010 came in like a bull, it looks as though growth in the existing housing market might slow in the second half of the year.
January 2010 housing sales totalled 4,986 compared to 2,670 sales in January 2009, according to the Toronto Real Estate Board. That’s a whopping 87% increase year over year and certainly a cause for some rejoicing. Meanwhile, average prices for the month rose 19% to $409,058, compared to $343,632 in January 2009.
As positive as this news seems, it’s worth noting that we’re still comparing current sales and prices against the dismal recession figures in the first part of 2009. Moving further into the year, it’s unlikely these kinds of percentage increases will continue.
The wildcard here is the much-discussed increase in interest rates by the Bank of Canada. Will they or won’t they?
The most recent word from Bank Governor Mark Carney is that Canadians should expect a tougher recovery than previously anticipated. That may mean the bank will sit on interest rates awhile longer.
So what does that mean for home buyers and home sellers? Well, it means buyers will have a slightly wider window than expected before interest rates increase. Sellers also will feel more comfortable listing with the average price on the rise.
As the proverb says: Make hay while the sun shines.
