The Canadian Real Estate Association has reported an increase in expectations for 2013 home sales. In June the organization predicted 443,400 sales for this year, but that number has risen to 449,900 due largely to buyers across the country looking to lock in low interest rates.
According to an article published in the Financial Post, “recent increases to fixed mortgage rates” have led buyers with pre-approved financing to jump into the market “sooner than they may have otherwise”. Interest rates have been at record low levels, and buyers who may have been reluctant are now looking to take advantage of their pre-approved rates before they expire.
In 2012 CREA had forecasted 2013 sales to reach 454,573, but the tighter mortgage lending rules led to a cooler market than predicted. However, August sales jumped 11.1% over the same month last year, and CREA also foresees an increase to the national average home price, by 3.6% to $376,300.