March Resale Housing Results Bring Positive News

The Canadian housing market is showing signs of rebound. March sales activity has shown an increase in sales in many areas compared with pervious months. It appears that many potential buyers are getting over the initial shock of the economic downturn and are starting to realize that there are great buying opportunities out there.

First-time homebuyers, low interest rates and greater overall confidence in the housing market are credited for the sales increase in March. Buyers are still acting cautiously, but they are feeling positive about the resale housing market this spring.

“This is a good beginning to the spring market. Confident buyers are taking advantage of the great opportunities that are available to them right now, such as historically-low interest rates and a good supply of properties for sale,” said Rick Snell, President of Ottawa real estate board.

Paul Penner, President of Fraser Valley real estate board, confirms real estate activity has picked up. “REALTORS® are seeing the return of first-time home buyers who have been waiting in the wings for the last few months, and homeowners responding to the opportunity to buy-up by moving from a condo to a townhome or a townhome to a detached house. Homes with a lower price-point are attracting more attention."

“With current interest rates and price reductions, buyers are looking at monthly costs that are 20% less than they were a year ago. In Fraser Valley, that’s a $780 per month savings on a mortgage for an average detached home.” Penner added.

For buyers, this market means more options from which to choose. With low interest rates, the new renovation rebate and the increase in the Home Buyers’ Plan, it’s an appealing time to buy.

“With price stability, low interest rates, spring weather and pent-up demand; it appears that REALTORS® are starting to get busy again,” said Charlie Ponde, President of the REALTORS® Association of Edmonton. “Our offices are reporting an increase in buyer interest.”

Below is a brief summary of sales activities in GTA:

GTA - Ontario

Greater Toronto REALTORS® reported 6,171 sales – down 7% from March 2008, representing the smallest year-over-year decline in the last five months. The average price for March transactions was $362,052 – down less than 5% from the same month last year.

“Sales in March increased at a rate over and above what would be expected from the normal spring-time bump,” said Jason Mercer TREB’s Senior Manager of Market Analysis. “A greater number of households have taken advantage of increased affordability in the housing marketplace.”

Information in this report is collected from the Real Estate Boards operating in each area.

Click HERE for a complete Market Watch Report for Toronto. Original released by TREB.