High-end Vancouver and Toronto real estate doing fine
According to the Canadian Real Estate Association, high-end Toronto real estate saw its best April ever in 2011 while new mortgage regulations sidelined most first-time homebuyers across the country.
When compared to March 2011, April’s seasonally adjusted national home sales activity decreased by 4.4 per cent due to the mortgage regulation changes and other factors. Actual, non seasonally-adjusted national home sales activity dropped by 14.7 per cent.
“Changes to mortgage regulations that took effect in April 2011 likely sidelined a number of first-time homebuyers,” said Canadian Real Estate Association chief economist Gregory Klump. “By contrast, higher end home sales in Greater Vancouver and Toronto had their best April ever.”
Difficult to properly compare latest Canadian real estate numbers
It’s also very important to note that last year’s April home sales were huge, and they were artificially inflated by a massive home buying rush because of the sooner-to-be-implemented new mortgage regulations, low interest rates as well as the Home Buyer Tax Credit.
“This year, additional measures to tighten mortgage rules were implemented in March and the other transitory factors were absent,” added Klump. “This makes it difficult to compare the two months in order to reliably gauge the impact of the latest round of mortgage rule changes.”
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