Market commentary

We have definitely weathered a storm here especially in British Columbia. The inaccurate fears of Harmonized Sales Tax (HST) caused a huge rush of people trying to purchase homes before the July 1st, 2010 introduction of the tax. What many people did not realize was that HST did not affect existing homes - it was only on new construction. July came in as one of the busiest months ever on record.

Then came the great weather and the the market slowed which is not unusual when the market transitions from a buyer's to a seller's market. Economists are stating that housing prices will dip very slightly over the next several months and we will see a very strong spring market.

The fixed interest rates have declined over the past few months and the Bank of Canada is now stating that they will put a hold on rate increases until the spring. All these actions definitely set us up for a strong spring housing market.

However in saying that, with the fixed rates declining along with a slight price decrease this is a great time if you are thinking of purchasing to start the process.

Give me a call for a COMPLETE Mortgage Analysis!

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.