Worst May Be Over For Lethbridge Real Estate Market

Robert May, Lethbridge Realtor & Mortgage broker

For a second straight month in June, in what analysts say is another sign that the worst may be over for the Canadian housing market, new home construction starts rose. Lethbridge real estate was a prime example of this.

Canada Mortgage and Housing Corp. said Thursday there were 140,700 new homes constructed in June. Construction was up almost 8% from the 130,300 May figure (on a seasonally adjusted annualized basis).

"There are some pretty good signs that we are starting to see in the housing market," said Bob Dugan, chief economist with CMHC. "We've seen it for quite a few months on the existing homes side."

Existing home sales rose 42% from January to May across the country and the early indications are that June was strongest month this year. Sales in Vancouver were up 76% last month compared with a year earlier and Calgary and Toronto both recorded 27% increases during the same period. Lethbridge real estate market remains steady with prices rebounding and sales picking up briskly for the summer season according to local real estate expert Robert May of www.LethbridgeRealEstateBlog.com

Existing used home inventories have begun to shrink across the country, convincing builders to ramp up construction once again. CMHC said urban residential single family homes climbed 7.3% in May from a month earlier. Good news for the real estate market.

"I can only speculate, but maybe a lot of people are relieved we are not seeing the decreases we have seen in the U.S.," said Mr. Dugan. "Peak-to-trough, the decline in the U.S. was something like 80%. In Canada, that would mean we'd have to have 55,000 starts. Some people may have thought that's where the Canadian market was going."

The general consensus among Canadian economists is that construction won't return to pre-recession levels but will continue to gradually improve in the coming summer months

Once again, Alberta is on track to lead the rebound and is already showing dramatic improvements in the real estate markets in the major centers. Alberta Realtors are busier now than they have been all year, and the summer season is expected to continue to be strong as interest rates remain affordable. Lethbridge mortgage broker Robert May has variable rate mortgages now at Prime plus only .3%, which makes them currently about 2.55% interest. This is not the lowest ever offered, but is still among the lowest rate financing available.

If you are seeking new mortgage financing, Lethbridge mortgage and real estate expert Robert May of Verico Canada First Mortgage is available to help. Contact him directly at www.LethbridgeRealEstateBlog.com for personalized and confidential service.

Robert May is a Realtor and Mortgage Broker in Lethbridge. He has been in the Lethbridge real estate industry for over 15 years and has helped many people buy, sell, and finance real estate. For Lethbridge mortgage and real estate needs, contact Robert May at either of his offices, Verico Canada First Mortgage or Rainbow Realty. He can be found online at the following link:lethbridge mortgage broker

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