Autumn Brings a Cooling Housing Market In 2012

Posted by on Nov 9, 2012 in News | 0 comments

The number of new homes being built in Canada fell more sharply than expected in October. Last week’s news will be welcome to the government which has repeatedly tightened mortgage rules. Meanwhile, new home prices continued their modest rise in September.

Recent reports indicate that the Canadian housing market is cooling, but there is little cause for concern. Housing prices and construction soared in 2011 and the first half of 2012 thanks to low interest rates. Since then, the government has tightened the rules on mortgage lending for the fourth time since 2008 in an attempt to prevent home buyers from taking on too much debt.

While this means that the housing market will not be as powerful a driver of economic growth as it was in recent years, we can expect property owners to invest in renovations and upgrading existing property to create value which will attract the few qualified buyers which are still in the market.

Contractors across Canada have already taken note of the shifting market demands. Jeff Bain, owner of JKB Construction in British Columbia, has noted that renovations always pick up when sales of new homes fall. Kitchens, bathrooms and basement suites continue to be the most popular renovations, and many clients are also renovating their entire homes.

While home owners may find difficulty in obtaining financing from the banks, it is important to remember that many projects qualify for rebates and tax incentives for energy efficient upgrades and installations. Such incentives are not just for residential property owners. Commercial and industrial energy efficiency projects can qualify for up to 50% of the total project costs. Sovereign Consulting will handle all of the necessary documentation to provide you with the the best value and service. For more information or a free consultation, call 416-746-9044!