The housing market continues on a stable and balanced track. Sales activity is nearly 50% above the recessionary low of December 2008 and only 11% below the recovery high of December 2009. Home sales rose while prices remain on par with the previous month.
According to the Bank of Canada, the economy is picking up steam faster than anticipated. Late 2010 proved to be significantly stronger than expected, with consumers continuing to be a key component. A 17% jump in exports was the fastest-paced increase in more than five years. The strong currency is a potential concern as it makes importing Canadian exports more expensive for other countries. This metric will be closely monitored by economists and the Bank of Canada alike.
Moving forward, rising interest rates and weak job growth are factors that are responsible for keeping sales activity and price appreciation stable and slower than seen during the recovery. Mortgage regulation changes will likely spur upward momentum in home sales during the first quarter. Due to improved affordability, balanced markets, and record-low mortgage rates, there are ample opportunities for both buyers and sellers.
