It was just another set of numbers but the housing industry says the latest figures from the Canadian Real Estate Association are further proof the sector does not need any more regulation.
The federal government has already cracked down on mortgage requirements on several occasions during this housing boom, including measures to force down payments, shrink amortizations lengths and reduce refinancing limits for existing homeowners.
But speculation continues to grow Ottawa will be back at it again with Toronto-Dominion Bank chief executive Ed Clark suggesting this week that amortization lengths should be lowered to 25 years. Consumers were allowed to amortize mortgages over 40 years back in 2008 but the federal government has whittled that down to 30 years.
“Letting the market sort things out itself is the preferable option because it is so difficult to tweak one element of public policy,” said Phil Soper, chief executive of Royal LePage Real Estate Services, adding CREA’s statistics show the market is already correcting.
The real estate association said Thursday the average sale price across the country in November was $360,396, a 4.6% increase from a year ago but the smallest year over year increase since January. It also said sales activity is now in line with the 10-year average.
“We are in for a natural cyclical correction due to an overshooting on home prices,” said Mr. Soper.
For the rest of the story… http://business.financialpost.com/2011/12/15/housing-industry-shy-on-new-rules/
www.christinebuemann.com
The federal government has already cracked down on mortgage requirements on several occasions during this housing boom, including measures to force down payments, shrink amortizations lengths and reduce refinancing limits for existing homeowners.
But speculation continues to grow Ottawa will be back at it again with Toronto-Dominion Bank chief executive Ed Clark suggesting this week that amortization lengths should be lowered to 25 years. Consumers were allowed to amortize mortgages over 40 years back in 2008 but the federal government has whittled that down to 30 years.
“Letting the market sort things out itself is the preferable option because it is so difficult to tweak one element of public policy,” said Phil Soper, chief executive of Royal LePage Real Estate Services, adding CREA’s statistics show the market is already correcting.
The real estate association said Thursday the average sale price across the country in November was $360,396, a 4.6% increase from a year ago but the smallest year over year increase since January. It also said sales activity is now in line with the 10-year average.
“We are in for a natural cyclical correction due to an overshooting on home prices,” said Mr. Soper.
For the rest of the story… http://business.financialpost.com/2011/12/15/housing-industry-shy-on-new-rules/
www.christinebuemann.com
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