15 October 2010
Georges Pahud, CREA president, says that supply and demand are rebalancing. It’s keeping the prices steady in many markets.
The main thing that’s keeping pricing from a larger decline is a new listings level which is still 15% below the April peak. In Toronto the sales are down by 22% (compared with last year).
“Another cooling factor is that some banks lowered their mortgage lending rates”, – said Gregory Klump, CREA economist.
But still CREA does not predict that low rates will increase the market demand.
“Even low and stable interest rates may not cause the housing demand to take off –one of the reasons for that is the accelerated home purchase level earlier this year.