Garry Marr
Other
Matthew Sherwood for National PostLow borrowing costs and balanced market conditions have brought buyers to the Canadian housing market, although slowing job growth and a recent jump in fixed long-term mortgage rates will likely cool the market for the rest of 2013 and into next year.
Low interest rates are helping to boost property markets across the globe and Canada is no exception, says a new report from the Bank of Nova Scotia.
However, future gains in Canada are no guarantee, the report from economist Adrienne Warren says.
“Canadian housing activity remains buoyant, though the underlying fundamentals for continued gains are becoming less favourable,” she said, noting average inflation-adjusted home prices jumped 2% in the second quarter from a year ago.
Ms. Warren says low borrowing costs and balanced market conditions have brought buyers to the Canadian housing market, although slowing job growth and a recent jump in fixed long-term mortgage rates will likely cool the market for the rest of 2013 and into next year.
On a regional basis, she says Alberta continues to have the strongest housing market, aided by population increases and growth in full-time jobs. By contrast, B.C. prices remain some of the softest.
© 2013 National Post
