Canadian home sales up in September
October 15, 2012
The Canadian Real Estate Association recently announced that sales of existing home has increased from August to September. This is the first time the sales rose since March, according to Reuters.
The group reported the activity was up 2.5 percent over the month, and marks a partial recovery from the 6.2 percent reduction in August, which came right after the new mortgage rules. However, the actual activity, which is not seasonally adjusted, remained down 15.1 percent from what September was at a year ago.
After the U.S. housing market crashed, it triggered a global crisis, and being mindful of this Finance Minister Jim Flaherty tightened the rules on government-backed mortgages once again in June. This was the fourth time in four years that Flaherty has done so, and the change went into effect on July 9. The trend of little to no improvement is expected to continue into the last few months of the year.
"National activity is likely to remain down from year-ago levels over the fourth quarter of 2012," said Gregory Klump, CREA's Chief Economist. "In the shadow of the latest mortgage rule changes, activity has ratcheted down from higher levels seen during the fourth quarter last year. While some first time home buyers may no longer qualify for mortgage financing under the new rules, it is likely that many others are stepping back and reassessing how much house they can realistically afford, which is one of the things new mortgage rules were designed to do."