According to the Canadian Mortgage and Housing Corporation, the housing market in the Kitchener Waterloo area will remain stable going into and throughout 2012. The detailed area study that was released on October 2011 highlights three trends that will take place over the first half of the year:
- Population growth and relatively stable employment in Kitchener Waterloo will support a stable to slightly increasing housing market, with about 1% in projected gains.
- Increased first time home buyer activity in the early part of the year will offset lower repeat buyer activity.
- A slowing National economy will be offset by a diverse and resilient local Kitchener Waterloo economy combined with historically low mortgage rates.
To this point on mortgage rates, the past several years have shown us in general, that when the overall National economy hesitates, mortgage rates remain at very low levels. These low mortgage rates reduce the cost of home ownership and add incentive for buyer activity to increase. The effect of these low mortgage rates has been particularly beneficial to the local Kitchener Waterloo housing market due to its diverse economy and generally increasing employment trend. This explains why the area has continued to see a very stable and even strengtheneing housing market even in times where the economy is sluggish.
I agree that this trend will continue throughout 2012. It will be an excellent buyers market with low mortgage rates and affordable pricing. And as the National economy strengthens in time, the area is well positioned to experience more rapid growth in the local market.
We should see 5 year fixed rate mortgages in the first half of 2012 remain in the low to mid 3% range and for variable rate mortgages to hold at the Bank of Canada prime rate with little to no discount off prime.
Feel free to contact me, Brent Richardson, local mortgage expert at your convenience for specific questions and answers regarding Mortgages, mortgage rates and the local Kitchener and waterloo housing market.
brent@brentrichardson.ca - 519 568 3377 - www.brentrichardson.ca
Best Regards,
Brent Richardson
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