Economic News & Home Prices

Reports about the nation’s economy lately seem to be focused on the topic of inflation or the lack thereof. The Bank of Canada has been aiming to have the annual rate of inflation hit about 2% and we are currently experiencing a rate of 1.2%. This means that prices are not rising at a rate that the Bank of Canada is targeting, suggesting that prices overall are not rising as the bank had hoped.
Real estate has been experiencing this, in Ottawa in the upper end of the spectrum but in the mid to lower range prices have indeed climbed. Will there be an end to this? Not this year.
The Toronto Dominion Bank it was reported in The Ottawa Citizen, February 4th. 2014, believes that Canadian house prices are overvalued by about 10% and that this over evaluation is more significant in regions that include Toronto, Vancouver, Montreal and Ottawa. The bank made note of the “overhang of inventory of unsold condos” in these markets and Ottawa is no exception in this regard.
The sale of condos over 600k has been sluggish over the last 12 months and this is evident with the lack lustre sales in the price range in the condo market.
The prediction is not for prices to fall in 2014 but more likely to see some price softening in 2015, when we begin to see the rise in interest rates and many of those condos under construction reaching completion.
Currently, there are great opportunities for Buyers with interest rates that are attractive and promising to remain so for some time. Buying and selling in this market still means that there are opportunities to leverage your current home and sell with a good return in order to buy up!
Exceptionalproperties.ca is available to help make this all come together for you!

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