GTA Sales down 13% in January
The Toronto Real Estate Board released their monthly sales figures today. Sales were down 13% over the same month last year and prices were up 4%. I'll look at these figures in a little more detail next week.
Economic research firm Capital Economics published a report this week that suggests a rise in interest rates could easily cause home prices in Canada to fall by as much as 25%. Their main concern is that homeowners with variable rate mortgages could not afford their mortgage payments when the central bank raises rates.
But not all economists agree, Scotiabank economist Adrienne Warren had this to say.
“We lack the triggers that prompted the U.S. market to crash, I think what you see is prices staying flat as incomes rise over the next few years.”
Housing prices to drop 25%, forecaster predicts (Toronto Star)
Rate hike could trigger housing collapse, economist warns (Financial Post)
Home prices could dive if rates rise, analyst says (Globe and Mail)
Interest rate rise could trigger house price collapse, report says (Canadian Business)
Other Real Estate News
GTA condo sales near record high (Toronto Star)
CMHC responds to the C.D. Howe Institute’s calls for more private insurers (Mortgage Broker News)
Data Bank a one-stop trove of GTA, regional housing stats (Globe and Mail)
Second Donlands subway stop exit done deal (Globe and Mail)
February 4, 2011This Week In Real Estate |