News Releases
TORONTO, April 15, 2009 – BMO and industry experts shared their insights on the current and future state of Canada's real estate market at BMO's Real Estate Forum in Toronto.
The panel discussion is available on video: events.snwebcastcenter.com/bmo/20090414/index.php
The video features BMO experts John Turner, Director, Mortgages, and Sal Guatieri, Senior Economist, along with industry experts, Brad Lamb, Brad J. Lamb Realty Inc.; Donald Lawby, President and COO, Century 21 Canada; and Phil Soper, President and COO, Brookfield Real Estate Services.
The panel acknowledged that while Canada's real estate market has significantly
slowed over the past year, there are positive signs that the worst may
be behind us. With mortgage rates at near-record lows the current conditions
may be optimal for some first-time home buyers.
“First-time home buyers need to surround themselves with a good cast
of experts, including a realtor and a lender that can help them take
the mystery out of the home-buying process,” said Turner. “We're
here to help guide you through the home buying experience and provide
the right advice so you can shop for your home with confidence. Come
in and talk to a financial expert or book an appointment with a mobile
Mortgage Specialist at a time that fits your schedule.”
Key insights from Sal Guatieri:
- Prices are expected to fall moderately further this year.
- The housing downturn appears to be slowing in response to improved affordability.
- Interest rates are likely to remain low well into next year. The economic recovery, coupled with low interest rates and good affordability, should spur an increase in home sales next year.
- Firmer sales, in turn, should allow prices to stabilize and eventually grow alongside household income. Firmer demand should also lift housing starts to about 160,000 in 2010.
- While the housing market may experience a further correction this year, it will remain far more stable than the U.S and several other countries. More conservative borrowing and lending practices in Canada limit the risk of a deep correction.
BMO recently launched the BMO First Home Essentials kit, a step-by-step guide for entering the real estate market. The kit includes helpful tips, worksheets to calculate various home purchasing scenarios, access to an online planning tool and more than $1,800 in special offers. The kit is available at www.bmo.com/firsthome or by calling 1-866-240-9920.
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