With the first two weeks of March in the books, single family home (SFH) sales are up 8% and pending sales have fallen back in step with last year’s levels.
Sales (click to enlarge)
SFH Pending (click to enlarge)
SFH Weekly Sales (click to enlarge)
Condos sales were up almost 6% from the same time period in March 2010. The early momentum seen in the first week didn’t hold. (Sales were up 28% in the first week)
This is somewhat disconcerting as there was an expected rush to get in before the end of 35-yr amortizations. Either:
a) too much hype about the end of 35-yr amorts and prospective buyers aren’t very concerned with it decreasing
b) this is the rush 
Condo Pending Sales (click to enlarge)
Condo Weekly Sales (click to enlarge)
Buyers have until Friday before the rule changes so there is still some time and we may yet see a last minute surge by the end of the week.
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CREA February Report
Gains in house prices are likely to “recede” starting next month as shorter mortgage terms keep some buyers out of an already softening market, CREA said today after reporting on February’s numbers. (Source)
“When you take Vancouver out of the equation, the year-over-year increase in the national average price drops to 3.4 per cent,” said Gregory Klump, the association’s chief economist. “While that’s still stronger than in the past six months or so, national average price gains may recede after tighter mortgage regulations take effect in March.”
“The February data may be an early sign that existing home sales may be running out of steam,” said Pascal Gauthier, senior economist at TD. “Still, sales should continue to be well supported by a number of factors. These include a favourable backdrop in terms of employment and income gains, as well as the low interest rate environment. This last element will likely begin to weigh on sales as the Bank of Canada starts to raise its interest rate policy in the second half of this year, however.”
Calgary & Vancouver bucked the trend with sale increases in February, while two-thirds of the country saw sales decrease.
“Canada’s housing market is re-establishing its comfort zone after having experienced strong bouts of volatility over the last three years,” Mr. Gauthier said. ”Although sales are expected to ease in most parts of the country as interest rates rise – the Prairies could be the exception –, activity should be strong enough to provide a floor under home prices. By the same token, better availability of new and existing units will provide more balanced markets than seen in pre-recession years. This will make it hard for home values to outpace general inflation over the next couple of years.”
