“In the last six to nine months, demand for housing was decrease in Winnipeg and in Manitoba, but it has picked up a good deal. Sales of existing homes in November, 2009 set a dollar sales record of $173 million compared to $113 million in November, 2008. People have recognized that the worst of the downturn is over. Potential home buyers are now more willing to enter the marketplace, confident of what the future holds.” said Jeff Powell, senior market analyst for Canada Mortgage and Housing Corporation in Winnipeg.

This can be seen as a good sign of recovery, well, at least for the housing market. The prices of built houses are in recovery and more homes and condos are being constructed based from what Canada Mortgage and Housing Corporation issued. The CMHC data foresees a 10% improvement in building and sales activity in 2010. However, the price growth of houses is yet unclear due to rising interest rates on Main Street which will have an impact with the Main Street recovery.

The said recovery is supported by growing employment rates and increased consumer confidence. As a matter of fact, The Bank of Canada will be raising short interest rates and lenders, who have more positive response to what the bond market says money cost, are already pricing higher rates into mortgages. The economic recovery and the status of the housing market right now rest on increasing consumer confidence. This could take an effort to maintain considering changing interest rates moving from a low 1.5% to 3% and 4$ or more.

Housing market trends in Canada had gone up and down for one reason, market liquidity. When market declines, houses for sale rise, house owners want to sell but couldn’t find the right deal. This goes the same way with buyers which yield to no closed business. On the other hand, during good market condition, house buyers become more eager to make deals before prices appreciate more. Liquidity rate and sales volume mark significant growth.

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