There’s some big news in the real estate sector today, with the National Post putting the story on the front page. Sales in Vancouver were up 117% in August this year over last year, and nationally prices have increased approximately 11%.
There is no question that low mortgage rates have fuelled most of the positive numbers in real estate. It will be interesting to see what happens to real estate as rates start to rise. When they rise is up for debate, but it is safe to say that they will likely start rising sometime in late 2010 if not sooner.
The Federal Reserve Chairman (in the US) has indicated that he thinks that the US is finally out of their recession. He did provide some caution, stating that he thinks it will be a while before the unemployment rate eases, and that the recovery will be slow. This is good news for mortgage rates if it is true, as weak markets have little inflationary pressures and translate into the low mortgage rates that we have today. Expect low rates in their current range for at least 6 months.
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