the housing market is expanding faster than anyone expected. In the spring of 2009, in Canada we saw the face of the housing market, and we saw real estate prices continuing to explode in the following months. Looking at the winter months we see an even greater increase with reports of over 100% jump. Not only did the statistics go back and forth but the average price exceeded the pre-accident statistics.
There are many reasons,
why the Canadian housing market has made (and still works) better than the global real estate market. Speaking to experts, many argue that this recovery is mainly due to lower interest rates imposed by the Bank of Canada. US prices were similarly low, but there are reasons why the lower-level policy was supportive in Canada but less so in America:
The American market had a lot of loans if the borrower did not have proper credit, as a result the loan was a great risk. Canada provided these companies with less than 5% and 10% of the country, in contrast to the American mortgage loan market that was 22%.
The World Economic Forum consistently states that Canadian banks are the safest in the world. This institutional position helped to avoid subsequent credit fraud.
Although jobs were lost and unemployment rates increased,
the numbers were not as bad as they were in America and recovery has been in place since the Summer of 2009. In addition, the Canadian social system helped reduce personal bankruptcy.
In conclusion the Canadian housing market is undoubtedly very strong. Where there is good news, some people look at these conflicts and say that a completely different balloon of what has happened, is about to hit us. Personally I don’t think this is true and that’s why.
The Bank of Canada has issued a statement to keep tax rates up until the summer of 2010.
Prices will increase as summer approaches and we are already seeing some bond prices rise slightly. We are very close to the completion of the First Home Buyer loan, which will impact the housing market. We have also seen, the shortage of new listings, which we have been enduring since the autumn of 2009, is slowing down. In the past few months, the real estate market has seen an increase in new listing agents, which has been relatively stable.
Excessive sales and prices of properties are resolved at tolerable prices, likely to be the result of all these new startups coming together.