Americans are showing stronger interest in Canadian properties
According to the latest report, Americans are showing strong interest for Canadian real estate online. However, can we expect this interest to be followed by real sales?
“It’s impossible to say for sure. Nevertheless, the history shows that a rise in listings views usually leads to gains in home sales,” – noted Phil Soper, president of Royal LePage. “Many people just view the properties for their recreation; however, a total growth of shopping activity actually leads to certain hikes in sales.”
In Soper’s opinion, even a potential sales increase will not affect home prices significantly.
The report by Royal LePage was published on Friday, saying that American interest in Canadian homes showed a sharp rise since the U.S. Presidential Election.
December 2017 – Canadian inflation rate reaches 1.5% due to oil prices gains
Last month, Canada’s annual inflation rate was up slightly, although it turned out to be still lower than expected, as food prices decline offset the hikes in other categories.
According to Statistics Canada, the consumer price index rose by 1.5% in December on a year-over-year basis, following a 1.2% increase reported in November. Meanwhile, economists had predicted a 1.7% hike for the previous month.
Genworth follows CMHC in raising its mortgage insurance cost
Genworth Canada, the biggest private mortgage insurer in the country, decided to follow the example of CMHC and also raise its premium for mortgage insurances.
As you know, this Monday, CMHC increased its mortgage insurance premium reacting to the new federal rules requiring larger capital from the CMHC against their mortgages.
Today, if you want to buy a house and can’t provide a 20% down payment, you must pay for a mortgage insurance. Although a borrower pays for it, the beneficiary is the lender, who will get a coverage in case of a mortgage default.