The Canadian Real Estate Association released a report Monday stating that the housing market has experienced a 30% decline in sales compared to the same month last year. Despite the slump, average July housing prices have increased slightly by 1% compared to July 2009. The average housing price as of July is $330 351, compared to$342 662 in June, representing a decrease of approximately 3.6%.
The increase in housing prices in June can be attributed to a house-buying rush, as consumers tried to avoid the July 1st implementation of the Harmonized Sales Tax (HST). However, HST only applies to services used when buying and selling an existing home. Thus, any minor effects HST may have had on mortgage payments were outmatched by the price increase.
However, hope for the housing market rests in the recent cuts to interest rates by major Canadian banks. For example, TD, Scotiabank, Laurentian Bank, the National Bank of Canada, BMO, CIBC, RBC cut their closed 5 year fixed mortgage rate by 0.1%, resting at 5.49%.
To view the most accurate and up-to-date Canadian mortgage rates, visit Ratehub.ca’s Best Mortgage Rates Comparison page. Use our mortgage calculator to view the effects of the recent interest rate cuts on your mortgage payments.