16 August 2011
Such forecasts were published right after the recent tumult at the world stock markets and an announcement about the U.S. holding its rates at historically low levels for at least another two years. Moreover, it’s quite possible the Bank of Canada’s rate decision was affected by these factors.
“Many economists expected a soon rate hike, but the situation has changed. The rates are down and they may remain low for the rest of the year or even right into 2012“, – said CREA President Gary Morse. “That’s why it’s a great opportunity for today’s borrowers to buy a house and get a mortgage at very favorable rates“.
The CREA report shows that “in the second quarter sales activity and prices turned out to be even stronger than expected”. In the end, the 2011 forecasts concerning sales activity and average price have been increased a little bit.