According to CMHC (Canada Housing and Mortgage Corp) published today November 24th, 2014, there is an overvaluation in the housing market across Canada. The good news is that the risk factors that most home owners are worried about are not present. These factors are prices overheating, price acceleration and overbuilding of homes.
Today’s market place, more specifically in Mississauga, is healthy but there has been a shortage of inventory for buyers. Properties priced at market value are selling in a matter of days which does not give buyers a lot of choice while searching and not a lot of time to decide on their purchase. This combined with the low interest rates, healthy employment and immigration keeps the market healthy and consistent. The benefit has been for the seller than it has been for buyers.
I’ve noticed in the last couple of years that the number of listings is highest at spring and into the summer. There are more buyers and more sellers. By the summer is usually the time of year that you will see the increase in the average and median prices when compared to the year before.
Personally, my prediction of the real estate market is that this will continue to be strong throughout 2015 and into 2016. The interest rates will remain low and may increase steadily in 2016. Slow rate increases shouldn’t shake the real estate market. The hopes are that a slow rate increase will help stabilize the prices.