In two recent articles I warned about the risk of waiting for house prices to hit bottom; that buyers who believed prices will drop further could get caught by an uptick. Those predictions may be borne out by the latest news from the Canadian Real Estate Association. According to CREA national home sales jumped 11.2 percent on a seasonally adjusted basis in April from March. It was the biggest increase in five years, and with 34,838 units being sold, the highest level in seven months.
In reporting those figures, a Canadian Press story last week claimed the country’s housing market shows every sign of having bounced back with both the number of sales and the price of homes rising for the third straight month in April. The national average sale price of homes listed by realtors rose last month to $306,366, the news agency reported.
The good news for buyers is that house prices remain at levels lower than they were a year ago so there continues to be solid opportunities. While economist predict the recession will drag on, affordability and low mortgage rates appear to be winning out against a weak economy. This latest housing news certainly is more encouraging than any other economic indicators.
This also comes on the heels of encouraging news out of the U.S. last month and our own sales statistics from the Oakville, Milton and District Real Estate Board. U.S. banks reported decent to record profits for the first quarter – fuelled in part by a resurging mortgage business. The surprising comeback was thanks mostly to low interest rates and a return to credible lenders. Here at home, the Real Estate Board last month showed that house sales were beginning to inch back up month over month in the first three months of this year.
A rebounding market is good news for sellers, but the current market is still a good time for buyers. We are at a point where prices will increase, but as long as there is a good inventory of homes for sale, there will not be wild jumps in prices. Timing is often the key to a good investment and I continue to encourage those who are in a confident financial position to begin shopping for your dream home.
I encourage you to visit DailyWebTV.com for my educational series or go to DanCooperTV.com to learn more about Dan Cooper Royal LePage Real Estate and to take the virtual tour of exciting properties. Also, for a free copy of my Guide to Oakville Real Estate or my booklet How To Sell Your House For Top Dollar, please call my office.
Dan Cooper is an award winning Broker with Royal LePage Real Estate Services Ltd. Dan can be reached at 905-849-3303.
Every effort has been made to ensure the accuracy of this article; however, the information is general in nature. Please seek professional advice relevant to your specific situation.





