May Update 2011

Despite lingering effects from regulatory changes in the mortgage markets, the housing market continues on a relatively balanced track. Sales activity is 47% above the recessionary low of December 2008 and not far behind the recovery high of December 2009. Home prices rose, while sales remained on par with the previous month. 

The Canadian economy continues to show positive signs. Growth forecasts for the second quarter of 2011 were revised from 2.5% to 4.2%. Improvements in trade are expected to bolster household incomes and net worth. While still historically high, the Canadian currency is likely to hold steady, near parity, with the U.S. dollar. While the Bank of Canada has left the overnight interest rate steady, it is expected to raise it this summer.

Moving forward, rising interest rates, weaker job growth, and a strong currency are likely to keep sales activity and price appreciation stable and slower than seen previously during the recovery. Due to improved affordability, balanced markets, and low mortgage rates, there are great opportunities for both buyers and sellers

Home Sales

in thousands

Resale housing activity remained stable from February to March, rising by
just 0.08%. Beginning March 18, the maximum term for government insurance mortgages decreased from 35 to 30 years. This encouraged buyers in the priciest markets to purchase before the deadline to lock in lower monthly payments.  Because the impact of this regulation appears to target upper-end homes in the most expensive areas of the country, its effects are generally expected to be minimal

Spring tips

·        

·         Replace your furnace filter

·         Clean the kitchen exhaust hood and air filter

·         Check your electrical system

·         Review your fire escape plan with your family

·         Have a professional air conditioning contractor inspect and maintain your system as recommended by the manufacturer

·         Check for damage to your roof

·         Repair all cracked, broken or uneven driveways and walks to help provide a level walking surface

·         Check all the fascia and trim for deterioration

·         Check your water heater

·         Check the shutoff valve at each plumbing fixture to make sure they function

·         Clean clothes dryer exhaust duct, damper, and space under the dryer

·         Replace all extension cords that have become brittle, worn or damaged

·         Inspect and clean dust from the covers of your smoke and carbon monoxide alarms