24th Jan, 2013

Canadian Housing Prices Fall

Whether buying or selling, you need local knowledge and expertise. Contact D. W. Howard Realty now to chat about the current market situation and 2013 forecast for Niagara Falls homes, Fort Erie real estate, Ridgeway homes, Crystal Beach homes, Port Colborne homes, and Lake Erie waterfront homes.

Canada’s national average home prices fell 0.4%  from November to December 2012. Year-by-year price increases were the lowest in 3 years.Fort Erie Homes

Prices dropped in 8 of the 11 metropolitan markets surveyed. 3 cities (Hamilton, Victoria and Quebec City) saw prices rise.

A report from the Teranet-National Bank Composite House Price Index shows that Canadian housing market activity has been steadily slowing since mid-2012. Will the market crash, or have a soft landing? Only time will tell.  We avoided a meltdown like the US suffered in 2009, thanks to our conservative lending standards.

Interest rates remain ultra-low. Despite low interest rates, in July 2012, the Canadian government tightened mortgage lending rules to make it harder for home buyers to accumulate too much debt, thus slowing down the market. This was in an effort to slow Canada’s red-hot housing market to avoid a crash later.  This was the 4th such government move in the last 4 years.

We can’t overstate the importance of having an experienced Realtor assist you locally. They should be aware of national issues and trends, but be alert to what’s happening in the local market. Niagara River or Lake Erie waterfront homes appeal to a different buyer, and their values don’t necessarily follow the rises and falls of urban residential real estate. In Fort Erie, the current economic situation is quite different from Niagara Falls. Let D. W. Howard Realty be your source for all your South Niagara real estate needs.

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