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As the pandemic has reshaped demand and pushed prices to all-time highs, more homes were sold in Canada this July than any other month on record. So is this the right time for you as first time homebuyer, to look at your mortgage options?

The Canadian Real Estate Association (CREA) said this week that the 62,355 sales in July, marked the highest monthly sales figure on record, with data going back more than 40 years! Sales in July were up 30.5% compared with the same month a year ago, and up 26% from June 2020.

CREA said the sales came as the actual national average price for homes sold in July, hit a record $571,500, up 14.3% from the same month last year. The average MLS residential price in BC was $770,810, a 12.9% increase from $682,702 recorded the previous year.

Senior economist at CREA said: ‘A big part of what we’re seeing right now is the snap back in activity that would have otherwise happened earlier this year. Recall that before the lock downs, we were heading into the tightest spring market in almost 20 years.’

Sales have also been helped by low mortgage rates. With rates for 5-year-fixed rate mortgages being offered at less than 2%.

The increase in home prices was broad-based, with all 20 of the markets tracked by CREA, reporting month-over-month increases in July. The Toronto area, Guelph ON, Ottawa and Montreal saw the biggest price spikes, with prices climbing faster in most markets East of Saskatchewan. Prices rose more modestly in British Columbia and Alberta.

While work-from-home solutions may be temporary for some, the ‘new-found importance of home’ has emerged as a more permanent consideration for buyers. The dangers of the pandemic – such as relying on day-care or navigating the grocery store- have translated into buyers who want to create a self-contained family unit with a playground and veggie garden. If you are one of these buyers and am not sure what you would be able to afford, please contact us.

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