Facts and Figures for the Mortgage and Housing Markets in Canada
DID YOU KNOW?...
That existing home sales, as measured by the Multiple Listing Service® (MLS®), have set new records in each of the last three years?
- While MLS® sales will fall short of last year‘s 460,700 unit pace, at 455,900 units in 2005, existing home sales will remain very close to record levels and will post their second highest year on record.
- A rise in new listings will help keep MLS® sales strong in 2006 at 433,700 units.
- However, the steady price increases of the past three years coupled with the expected rise in mortgage rates will push mortgage carrying costs higher and cause housing demand to ease gradually.
- The largest decrease in MLS® sales will be in Quebec (-6.6%), followed by Newfoundland, Prince-Edward Island, Ontario and Nova Scotia. MLS® sales will increase in New Brunswick, the Prairie provinces and British Columbia.
DID YOU KNOW?...
That strong growth in renovation spending is expected to continue in 2005?
- Renovation spending has climbed steadily since 1999 due to the solid performance of the Canadian economy, in particular, the strong performance of the housing and labour markets.
- Robust job growth has generated steady income gains, which has helped finance renovation projects and has given consumers the confidence to go ahead with major expenditures that the renovations entail.
- Low mortgage rates and record sales of existing homes over the past several years have also contributed to the pick-up in renovation activity. During the last year, the posted five year mortgage rate has been at its lowest level since the 1950s. At the same time, rising house prices have increased the amount of equity available to homeowners to borrow against.
- With interest rates expected to remain low over the next couple of years, refinancing will remain attractive, which in turn will provide a boost to renovation activity.
Source: Housing Market Outlook, Canada: Third Quarter 2005