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Housing Has Peaked Says CBC

Housing-Peak CBC recently ran a story saying Canada’s real estate boom is over.  The story cited the following CREA statistics:

  • Home sales (unit and dollar volume) are down 16+% year-over-year.
  • Prices increased just 1.1% in May compared to May 2007, the smallest annual increase in seven years.
  • May had a record number of home listings:  54,029

If the market is in fact peaking, this portends at least two possibilities from a mortgage standpoint:

a)  Lenders may get increasingly conservative in their underwriting as the market keeps slowing; and,

b)  Appraisers may become more reserved in their valuations.  We’ve already noticed appraisals coming in slightly weaker in recent months.

At this point, however, a few months does not a trend make.  We’ll keep an eye on June and July’s numbers and report back.