Canadian Housing Market Moderating; BMO Economics Projects Sales and Prices to be Flat in 2012
TORONTO, ONTARIO--(Marketwire - Jan. 16, 2012) - The Canadian housing market showed distinct signs of moderation in late 2011, according to a BMO Economics report on the latest data for Canadian home sales.
"While seasonally adjusted sales did manage to rise 1.8 per cent from the prior month in December, sales were up a moderate 4.6 per cent from year-ago levels," according to Douglas Porter, Deputy Chief Economist, BMO Capital Markets. "Most signs continue to indicate that the market is broadly balanced on a national basis. The supply of existing homes for sale is 5.8 months, and the ratio of new listings to sales is also well within long-term norms."
Mr. Porter expects further moderation in housing in the year ahead. "We look for both sales and prices to be roughly flat this year. That could be just what the policy doctor ordered, allowing incomes to catch up to higher prices."
"While the housing market is showing moderation, it's always important for Canadians to examine ways to reduce overall housing costs," said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. "BMO has been a leader developing products, such as the low-rate mortgage with a maximum 25-year amortization, that we believe are directly relevant to today's environment and specifically designed to help Canadian consumers manage their debt. In September, BMO urged Canadians to choose a 25-year amortization as a way to significantly reduce the amount of interest paid over the life of the mortgage."
BMO Bank of Montreal has lowered the rate for its 5 year low-rate 25 year amortization mortgage by 50 basis points to 2.99 per cent. This limited time offer is available only until January 25th, 2012. By getting pre-approved, customers have up to 90 days to search for the home of their dreams and take advantage of a guaranteed low rate that won't be around forever.