Categorized | International

Canada Housing Market Starting to Cool

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For months, Canada’s housing market has been scorching hot. It’s incredibly strong growth prompted the nation’s government and banking officials to consider various measures to cool the market down in hopes of preventing any kind of crash. They believed that growth in certain cities, such as Toronto was unsustainable, particularly in the condominium market.

The most recent reports, however, are a welcome sign to officials. There are now multiple signs pointing to a slowdown in the residential real estate market in Canada. As such, banking officials believe that measures may not need to be taken to restrict mortgage-lending standards in the country.

The fact that the market is cooling down means that the risk of a major housing crash in Canada is dissipating. There are still some worries that the hottest markets may still need some interventions on behalf of the lenders and government officials. Markets like Toronto, Calgary, and Vancouver all have shown impressive growth over the last year.

Officials and lenders still have not ruled out restrictions to lending standards in those three cities. The Finance Minister of Canada has, thus far, placed restrictions of lending standards three times in the past year. The latest data suggests that he may not need to establish another nationwide restriction, though it is possible that he tightens lending standards again for specific cities.

Canadian officials and lenders believe that, despite the fact that the market has shown impressive growth over the last year, the nation has never faced the threat of a crash that would be similar to that faced by the United States.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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