Hi Everyone!
Many people have been running around talking about our current economic and Real Estate market situation. I would like to take this opportunity to provide you with some information that is as ‘cut and dry’ as I can make it.
I spent a little while on the Bank of Canada’s website to pull some monthly rates over the past ten years, and then converting them to graphs (through Excel) to give you an idea of the economic landscape as it appears today.
Observe the Bank Rate (minimum lending rate TO lending institutions from BOC), and the Prime Rate (minimum lending rate BY financial institutions).
(Source: http://www.bankofcanada.ca/en/rates/digest.html converted to Excel)
Bank Rate 1.75%
Prime Business Rate 3.5%
What we are observing here are historical low lending rates.
Going rates from various mortgage brokers (best alternative to Banks IMO), show 5 year Fixed rates below 5% and Variables just above 4%!!
How about a peek at the value of the stock in the market right now?
In October, the average Canadian home price fell by 10% from a year earlier!
http://www.financialpost.com/news/story.html?id=1008418
That same month, the Financial Post noted that Canadian home sales fell 14%, and then the Globe and Mail noted a further 12.3% in November!
http://www.financialpost.com/news/story.html?id=959714
http://business.theglobeandmail.com/servlet/story/RTGAM.20081215.whomes1215/BNStory/Business/home
Coming to a conclusion:
Lending rates are down to historical lows, and housing prices are following suit.
Do you think that it is a good time to buy?
For more information, don’t hesitate to contact me at mevans@partnersadvantage.ca
Cheers
The Evans Real Estate Group Blog 