Recently, The Globe and Mail reported that 'the Canadian economy is suddenly looking a lot hotter.'
It goes on to say: 'A potent confluence of events suggest money is flowing fast and thick in Canada, pressuring prices and stimulating economic growth.'
Part of the driving force for this is enormous government spending committed in recent budget announcements.
The economy is one of the most powerful influences on the real estate market. While a strong economy does not encourage lower interest rates it does provide the capital and confidence for investment.
The mortgage market continues to become more competitive with recent announcements providing better mortgage funding for investment properties. Now high ratio lending to 90% is available and full income from the investment is taken into account in calculating the debt ratio. This news combined with longer amortization periods (up to 40 years) creates an awesome opportunity for owners of income properties.
Furthermore, Re/Max Ontario recently reported that 'entry-level buyers continue to be a driving force in real estate. Their undaunted enthusiasm is expected to translate into sales at or ahead of last year's record levels in the Spring of this year.'
It continues, 'Low interest rates and solid economic performance in most major Canadian centres have also played a substantial role in providing purchasers with the confidence to go out and buy their first home. '
Locally in Georgetown Ontario, homes are selling very well and we seem to be enjoying a buoyant market. The number of sales this year to March (2007) over last March has increased slightly. However there were fewer listings. More listings are needed to take advantage of this market.
Remember, listing a home can be done by any agent....Selling at a great price can only be done by excellent Marketing, Pricing and Negotiating so pick your real estate agent wisely.
