|March 2013||March 2012|
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings|
|Months of Inventory|
Tracking extremely close to last year now with an identical sales rate and a couple more listings (sales/list last year this time was 37%). If this spring is to stabilize the market somewhat then sales will have to pick up significantly.
On the topic of equity, here is the situation for home owners in Canada according to StatsCan.
Meanwhile, here is what happened to house prices.
Interesting how equity increased along with house prices from 2000 to Q1 2007 and then took a nosedive. That is right around the time when CMHC opened the mortgage taps and started to fire up the market with a stream of new buyers that had previously been priced out. Take a look at the mortgage changes that led up to this decline in equity, courtesy of Saskatoon Housing Bubble.
Mar 2006 – CMHC: 0% down, 30 yr amortizations (Genworth announces 35 yr amortizations)
Jun 2006 – CMHC: 0% down, 35 yr amortizations, interest only payments allowed for 10 years
Nov 2006 – CMHC: 0% down, 40 yr amortizations, interest only payments allowed for 10 years
The flat period after 2003 also perfectly lines up with the introduction of 5% down for everyone and the removal of CMHC price ceilings.