Lower housing and condo sales in the forecast

The Canadian Real Estate Association (CREA) has lowered it’s housing forecast again… they now forecast 459,600 resales in 2010..this is a 1.2% drop from 2009..

We’re also seeing signs the Condo market is starting to cool off… it’s been 16 years since condo prices have not increased.. 16 years!    We are certainly overdue for a cooling off period…

But this is just another sign our economy is not as ‘Red Hot’ as some first thought…  and it’s good news for interest rates…  The Bank of Canada is less likely to increase their rates as fast we once thought…

Give Variable rate more consideration.. Fixed rates have come down slightly… 5 year fixed rates are hovering around 4.09% to 4.19%…but Variable rates are available at 2.10%…