16 June 2014
During the previous 5 years the Canadian real estate market has been rising significantly, so economists were waiting for this spring to determine whether the market is cooling down or getting hotter.
“May compensated the weak beginning of this spring’s season,” BMO analyst Atul Shah noted, adding that May is usually the hottest month for home sales in the whole year.
“With today’s extremely low mortgage rates and the supply reflecting the sales, we believe the Canadian housing market will remain strong during this summer,” he said.
In addition to it, TD Bank economist Leslie Preston expects home sales to keep the pace for a few months while banks still promote their low interest rates.
“Nevertheless, employment growth is weak and real estate prices are outstripping the income growth, so TD Bank predicts lower sales later in 2014,” – Preston added.