July 27, 2022
By the way, it’s not always true that new and resale home markets are ultra-responsive to interest rate moves. When the federal funds rate was lowered after the financial crisis of 2008-2009, it still took years for U.S. housing starts to regain anything like their former vigor. The conventional five-year fixed mortgage rate in Canada has climbed above 6.00%, according to BoC statistics. At its lowest point in recent times, it was 4.79%.
The ‘median’ is different from the average in that it marks the spot located in the middle among all the observation points, with half to the one side and half to the other side . The S&P CoreLogic Case-Shiller Home Price Indices provide further evidence of sticker shock in the U.S. homes resale marketplace. The 20-City Composite Index in May was +20.5% y/y.
According to the Canadian Real Estate Association , the average price of a home resale in Canada is now $665,849, but that’s -1.8% relative to June of a year ago.