The Canadian Real Estate Market is in Good Shape
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Peter Diamant
Apr 4, 2013, 6:00:14 AM4/4/13
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Peter Diamant
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Article Title: The Canadian Real Estate Market is in Good Shape
Author: Peter Diamant
Word Count: 538
Article URL: http://www.isnare.com/?aid=556179&ca=Real+Estate
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=556179
Easy Publish Tool: http://www.isnare.com/html.php?aid=556179
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With the recently released May report from the Canadian Real Estate Association (CREA) that sales of resale homes in Canada are cooling and price increases tapering off, we can put to rest the worry about an impending housing bubble, similar to the one that happened in the US a couple of years ago. This fear of the housing bubble drove the followers of the market and professional analysts insane. These same individuals are now worried sick about the opposite happening - an impending housing market collapse.
What Really Happened?
i) Canada suffered a short, steep drop in home prices as the recession hit late in 2008. Fortunately, this was immediately followed by a steep rebound as it became obvious that the record low interest rates offered by the financial institutions presented an historic chance to buy a home cheaply.
ii) Now, just as experienced analysts had predicted, the rebound is being replaced by a more stable price environment. The number of homes sold in May fell by 9.5 per cent, while year-over-year price gains moderated to 8.4 per cent, off from the peak gain of 16 per cent in March. Our real estate rebound was possible because Canada's banking system remained in good health, unlike in the U.S. which has suffered deep scars. Historically low mortgage rates helped repair the relatively modest damage to prices inflicted by the downturn. Now a more stodgy, almost boring outlook actually comes into sight: a market where predictable market forces affect the sales and prices.
iii) As a result of rising prices, the supply of new listings is growing. At the same time, overheated demand of the first 4 months of 2010 is ending. Fewer buyers are anxious to snap up property fast now that their window of opportunity is closing. Interest rates are rising, albeit slowly and by minimal amounts. The HST on new homes will come into effect shortly in Ontario and British Columbia, the country's hottest markets. In fact, the biggest price gains driving national averages came from Vancouver and Toronto. In Montreal and most of Canada's other big cities, prices rose modestly so there won't be much excess to work off.
In retrospect, the concerns about real estate in Canada following in US footsteps has not materialized. The reason Canada avoided a collapse in prices is because the economic and banking fundamentals avoided the disaster that unfolded in the US and elsewhere. Similarly, there wasn't much sign of an impending bubble. Prices were being driven up by temporary factors brought about by conscious political and economic decisions and not by speculation and overseas buyers as has happened in many markets in the US. What we had experienced was a modest overvaluation with very little sign of speculation.
So what is the outlook for the coming year? Most economists agree on a modest fall in prices in overpriced markets, like Vancouver and Toronto, pulling down the national average price by an estimated seven per cent. Richmond Hill Homes for Sales will remain stable. Other large markets such as Montreal will experience a smaller drop � approximately 3-4%. Regions such as the Prairies and Maritimes could even see small gains in the coming year.
About The Author: Peter Diamant is a Realtor with Sutton Group-Admiral who specializes in http://www.buysellyorkregion.com/richmond-hill-homes-for-sale.html Richmond Hill Homes for Sale and http://www.buysellyorkregion.com/richmond-hill-condos-for-sale.html Richmond Hill Condos for Sale. For more information about the real estate market or to search for available properties, please visit the website.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=556179
*********************** ARTICLE END ***********************
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Message delivered directly to members of the group:
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*****************************************************************
Please consider this free-reprint article written by:
Peter Diamant
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=556179
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=556179
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: The Canadian Real Estate Market is in Good Shape
Author: Peter Diamant
Word Count: 538
Article URL: http://www.isnare.com/?aid=556179&ca=Real+Estate
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=556179
Easy Publish Tool: http://www.isnare.com/html.php?aid=556179
*********************** ARTICLE START ***********************
With the recently released May report from the Canadian Real Estate Association (CREA) that sales of resale homes in Canada are cooling and price increases tapering off, we can put to rest the worry about an impending housing bubble, similar to the one that happened in the US a couple of years ago. This fear of the housing bubble drove the followers of the market and professional analysts insane. These same individuals are now worried sick about the opposite happening - an impending housing market collapse.
What Really Happened?
i) Canada suffered a short, steep drop in home prices as the recession hit late in 2008. Fortunately, this was immediately followed by a steep rebound as it became obvious that the record low interest rates offered by the financial institutions presented an historic chance to buy a home cheaply.
ii) Now, just as experienced analysts had predicted, the rebound is being replaced by a more stable price environment. The number of homes sold in May fell by 9.5 per cent, while year-over-year price gains moderated to 8.4 per cent, off from the peak gain of 16 per cent in March. Our real estate rebound was possible because Canada's banking system remained in good health, unlike in the U.S. which has suffered deep scars. Historically low mortgage rates helped repair the relatively modest damage to prices inflicted by the downturn. Now a more stodgy, almost boring outlook actually comes into sight: a market where predictable market forces affect the sales and prices.
iii) As a result of rising prices, the supply of new listings is growing. At the same time, overheated demand of the first 4 months of 2010 is ending. Fewer buyers are anxious to snap up property fast now that their window of opportunity is closing. Interest rates are rising, albeit slowly and by minimal amounts. The HST on new homes will come into effect shortly in Ontario and British Columbia, the country's hottest markets. In fact, the biggest price gains driving national averages came from Vancouver and Toronto. In Montreal and most of Canada's other big cities, prices rose modestly so there won't be much excess to work off.
In retrospect, the concerns about real estate in Canada following in US footsteps has not materialized. The reason Canada avoided a collapse in prices is because the economic and banking fundamentals avoided the disaster that unfolded in the US and elsewhere. Similarly, there wasn't much sign of an impending bubble. Prices were being driven up by temporary factors brought about by conscious political and economic decisions and not by speculation and overseas buyers as has happened in many markets in the US. What we had experienced was a modest overvaluation with very little sign of speculation.
So what is the outlook for the coming year? Most economists agree on a modest fall in prices in overpriced markets, like Vancouver and Toronto, pulling down the national average price by an estimated seven per cent. Richmond Hill Homes for Sales will remain stable. Other large markets such as Montreal will experience a smaller drop � approximately 3-4%. Regions such as the Prairies and Maritimes could even see small gains in the coming year.
About The Author: Peter Diamant is a Realtor with Sutton Group-Admiral who specializes in http://www.buysellyorkregion.com/richmond-hill-homes-for-sale.html Richmond Hill Homes for Sale and http://www.buysellyorkregion.com/richmond-hill-condos-for-sale.html Richmond Hill Condos for Sale. For more information about the real estate market or to search for available properties, please visit the website.
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=556179
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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