28 July 2011

The economists say May gains were caused mostly by the Vancouver and Toronto markets (1.6% and 1.7%, respectively), followed by Montreal (0.7%), Calgary (0.6%), Ottawa (0.5%) and Halifax (0.1%).
The report’s author, senior economist Marc Pinsonneault adds: “With the time period between house sales and their entry in public land registries, it’s quite possible that April and May rises were caused by increasing March sales. At that moment many buyers hurried to purchase a home before the reduction of maximum amortization period for insured mortgages”.
“But now this high activity is over, that’s why the recent spikes in Canadian real estate prices shouldn’t stay for long”.

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