The annual Housing Market Outlook,
published by Re/Max this morning, forecasts an increase in mortgage rates as early as May 2015. The Bank of Canada has already hinted at a rise in the new year, though it didn’t specify when.
The report also points out another potential reason for a surge of investors in the early part of 2015: it expects the year's sale prices to rise by three per cent in Vancouver and Calgary, four per cent in Toronto and Edmonton, and six per cent in Moncton, driven largely by continued low interest rates, strong GDP growth and an influx of some 285,000 permanent residents.
“Canada’s housing market is mirroring the resilience of our economy,” said Gurinder Sandhu, the regional director of Re/Max Integra Ontario-Atlantic.
“Housing demand is being supported by steady employment and immigration, while our GDP is expected to grow another 2.5 per cent in 2015. This is mitigating the effects of higher inventory, which many markets have been experiencing due to increased development.”
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The prediction of a mortgage rate hike in 2015 is likely to bring a surge of investors into the market early next year, according to a new report, as buyers aim to secure a low rate before the Bank of Canada ends its one per cent run.