Smaller growth predicted for Canada’s housing mar
Existing data shows a healthy market for residential real estate in Canada growth has remained steady during the first half of 2012 but is forecast to decelerate during the months ahead.
According to several leading house price index the price of property in Canada is more than 5 per cent higher than a year ago and although the number of residential real estate sales fell for the first time this year in May they are still almost ten per cent higher than in May 2011.
Figures supplied by the Canadian Real Estate Association show the largest price increases have occurred in the Northwest Territories and Prince Edward Islands both regions have seen house prices increase by more than 20 per cent. British Columbia which has some of the most expensive housing throughout Canada saw prices fall by more than 12 per cent.
New mortgage rules took effect from the beginning of this week in an effort to discourage buyers from taking on too much debt. Mortgage terms reduce from 30 years to twenty five year terms and maximum LTV ratio was cut to 80 per cent.