Categorized | International

Canada’s Real Estate Market May Slow Down

Please Share!

Economists have released their latest forecast regarding the health of Canada’s residential real estate market. While many people have feared that Canada would be hit by a major residential property crash, the latest reports indicate that such an event will more than likely not take place. However, economists do believe that the market as a whole will start to cool.

 

Currently, the residential real estate market in most major cities in Canada favors the sellers. With that said, buyers are starting to gain a bit more power in the market. Housing prices started to decline slightly towards the end of 2011, and will probably continue to decline well into 2012. As such, the residential real estate market is becoming more affordable for the majority of buyers.

 

The current nationwide real estate trends in Canada do not apply everywhere in the nation, however. In the case of Toronto, the overall demand for housing has outpaced supply, keeping prices at an inflated state. With that said, the housing market in Toronto is slightly less affordable than it is elsewhere in the country.

 

Two of the reasons as to why the Canadian housing market experienced a slight decline over the past six months are that lenders have amped up restrictions on mortgage lending, and the job market has slowed down a bit.

 

Canadian housing values are expected to correct themselves by roughly fifteen percent over time. Economists believe that the market may drop by as much as fifteen percent when all is said and done.

Please Share!

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.

Leave a Reply

Twitter Chat