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Home Prices in Canada Projected to Rise at the Remainder of 2014

Posted on 3rd Jul 2014 by Mark Stern
Market up price

Based from a report released by TD Economics, it is projected that the housing market in Canada will stay hot for the remaining months of the year. This is the projected condition with the housing market as the home prices are expected to rise due to the low interest rates and also the increasing demand. Again this report has been updated that around 5-6% will be the average increase in the home prices as the year ends.

 

Early this year, it was expected that the home sales in Canada will flatten out and has called the market overvalued of around 10%. Though there were no reports stating the estimated price on how much it will rise or drop, it was believed that this forecast was due to mortgage rates were creeping up yet the rates are continuously lowering and the demand is still propping up.

 

Because of the low interest rates, the condos were made affordable and home prices were stated as in its most favorable state. Since it was considered favorable, there were many first-time buyers who were pushed out of the market who were seen to be returning because of the rates.

 

In the month of May, it was seen that the average resale of home prices in the national level is growing about 7.1% annually that may surpass the average growth rate for 10 years. Despite these issues, there are still forecasts saying that the real estate market in Canada will still cool down when the interest rates as well as the available home will increase. Such factors are expected to be enough to make the buyers go back to the market and purchase properties.

 

Though there are many reasons for real estate buyers to doubt the current state of the market, experts are still expecting that the buyers will still return to the market as soon as interest rates rise.

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