Canada's housing market healthy again after slight "pause" in summer: Re/Max
- Thread starter Kassz007
- Start date
Fortunately for Canada, we did not "do everything" like the US. Not even close. If we did, the housing market would have blown up by now. The fact of the matter is, foreclosures in Canada are not a significant problem.
I realize this was put out by a real estate broker, which has obvious conflicts of interest. But if the housing market really was shitty in Canada, Remax would not destroy their credibility by coming out with statements that suggest the exact opposite.
Quote from Ghost of Cutten:
Junk food good for your health, says McDonalds rep
Canada looks a bit like Australia but not quite so bubble-icious. You can tell by the way they ignore stretched valuations and think they are some unique exception, they are getting cocky that their banking system and regulation is so superior to the foolish Americans and Europeans. Well it was, but high enough prices will make any system into a dangerously unstable bubble. Price/income and price/rent ratios are getting out of whack there too and the further it goes the more painful the inevitable adjustment will be.
Are you able to provide some numbers or a reference to back up your claim that valuations are way out of whack?
I thought housing prices would come down more here. There have been homes on the market for a year and they have barely inched down in price. Homes selling for 98-99% of listing is quite common as well.
On the other hand, rents haven't moved either. The same houses/apartments are asking the same price as they did 1-2 years ago.
On the other hand, rents haven't moved either. The same houses/apartments are asking the same price as they did 1-2 years ago.
I think the big reason housing prices have held up in Canada despite the fact that the number of homes being sold is decreasing is the relative lack of foreclosures. Many who are selling their homes are doing so for personal reasons rather than financial. If your house is for sale and isn't selling, no need to slash the price in a hurry.
As long as employment holds steady, I predict housing prices will remain stable as well.
http://noir.bloomberg.com/apps/news?pid=20601082&sid=agkjpa.5dEUI
Canada August New Home Price Index Rose 0.1%
"The 0.1 percent advance reversed an identical loss in July..."
"Economists predicted the index would decline 0.1 percent..."
"Home sales have been aided by low borrowing costs, with Canadaâs five-year fixed mortgage rate at 5.39 percent last week, close to the 5.25 percent set in April 2009 that was the lowest in half a century. "
Canada August New Home Price Index Rose 0.1%
"The 0.1 percent advance reversed an identical loss in July..."
"Economists predicted the index would decline 0.1 percent..."
"Home sales have been aided by low borrowing costs, with Canadaâs five-year fixed mortgage rate at 5.39 percent last week, close to the 5.25 percent set in April 2009 that was the lowest in half a century. "