Residential housing markets across the country are showing increased sales volumes this year as first-time buyers race to take advantage of low interest rates, while they last, according to RE/MAX.
A first-time buyers report issued Tuesday by RE/MAX found that Greater Vancouver continues to be one of Canada’s strongest housing markets.
Sales activity in the region is up almost 12% so far this year compared with the same period in 2010.
“With the Canadian economy on firmer footing overall, residential real estate is well positioned, moving into the traditionally busy spring market,” commented Elton Ash, regional executive vice-president, RE/MAX Western Canada.
“Consumer confidence is climbing in conjunction with economic performance, and concerns over a secondary recession fade with each passing day. The mood is cautiously optimistic as first-time buyers enter the market.”
RE/MAX also said many first-time buyers are “scaling back” their expectations, in terms of size and location, to become homeowners.
As a result, a shift is occurring in the country’s housing mix, as builders focus on condominium projects and subdivisions to create more affordable housing options for young buyers.
The news comes a day after TD Bank increased its mortgage rates to reflect “rising bond yields and the subsequent increase in the cost of funds.”
Five- and 10-year fixed rates increased 0.35% to 5.69% and 6.85% respectively.