The fact the Federal government’s new mortgage rules aren’t scheduled to kick in until April 19 hasn’t stopped housing markets across the country from showing signs of cooling.
As more lenders implement the rules early – and thus decrease affordability – and more homeowners put their houses on the market, it looks like the supply/demand curve might finally be balancing out.
Below are a few supporting numbers, as per the Canadian Real Estate Association’s numbers:
1.5% - the month-over-month drop in existing home sales from January to February, 2010. This follows a 3.8% decrease reported in January.
2.4% - The amount that new housing listings grew in that same period, marking the fifth straight month of increased housing supply.
5.2 months – The amount of housing inventory in February, well below the 8.8 months of February 2009, but on par with 2008 levels.
$335,655 – The average price of all homes sold in February – up 18.2% from a year earlier. Keep in mind, however, that the housing market was still in a slump for the first quarter of 2009.
"Time will tell how normal the market becomes, but I think there are pretty clear signs that some self-correcting mechanisms are starting to take over and lead to a calmer market, compared to what we saw in late 2009," said Douglas Porter, deputy chief economist at BMO.
Great information Marcy. Understanding the trend and cycle is critical to making good, informed decisions. Keep this accurate and timely information coming.
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