Housing Price Index
Number of Sales
Number of New Listings
Total Active Listings (includes condos)
Total Sales (Includes condos)
Interest rates went down AGAIN last week -- don't count on them getting much lower!!! The bank's overnight lending rate is now 0.5%. Mortgages are now available on a 5-year term at less than 4%. A 10-year term is now available at 5.25%!!! A year ago, at the height of the market, interest rates were closer to 7%. So what difference does a few percentage points make, you ask?
Last year, payments of $5000 a month would have bought you a $980,000 property. Today, payments of $5000 a month will get you a 1.4 million dollar property. And given that prices are down at least 20% since a year ago, your 1.4 million dollar house would have cost you almost 1.8 million a year ago. So today you can afford to buy a house that's almost TWICE as nice as you could have purchased a year ago. With this information, it's easy to see why, despite the recession we're still in, people are now buying like crazy.
Also, for investors, many condos (and even some houses!) now cash-flow! If you have, or can borrow, at least $50,000 you can now likely get 25-35% annual return on that money (AFTER tax!) by investing in a rental condo. Don't believe me? Give me a call and I'll send you the spreadsheets!