Canada's real estate
market is finding its balance.
A surge in new listings in November helped ease a chronic supply shortage and temper prices from a month earlier, easing fears of a bubble in the making even, though the rebound in the market continued unabated.
That's what economists were looking for because a steady string of monthly price increases could inflate an asset bubble and lead to a severe correction when interest rates eventually rise. For the past several months, prices have been rising month-over-month, with double-digit percentage increases posted year-over-year.
Listings in November increased by 5 per cent compared with October, the largest one-month gain in two years, the Canadian Real Estate Association said Tuesday. The increase is a sign of
consumer confidence, and signals a return to normalcy in what has been an extremely volatile market. More inventory ultimately means lower prices. The average national price in November declined by 1.1 per cent from October to $337,231, although that was still up sharply from the depressed levels 12 months ago.
