An unusual home sales rally in December has stoked speculation that the Canadian housing market may start to heat up even more. With prices still soft as the central bank signals that it’s done raising its benchmark rate, buyers are trying to find the best time to purchase property before more competition floods in and pushes prices back out of reach.
The psyche in the market has already started to shift. Canadians became more optimistic about home prices in November and that trend has steadily risen in the months since, according to a poll conducted for Bloomberg by Nanos Research.
It’s lured in buyers such as Maria Herrera, a 31-year-old manager at a Vancouver animation company. With the goal of snagging a two-bedroom condo, she recently jumped back into the market with her husband and agreed to buy a place in the suburbs in January after spending the past few years weighing a home purchase.
“I don’t think we’re the only ones who have saved for a down payment in the last three years,” Herrera said. “It will go back to people getting excited with the rates getting lower, and people just going a little crazy and going into a buying frenzy.”