Categorized | International

Housing Market in Canada Not As Bad As Originally Thought

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For the greater part of the year, residential real estate analysts were saying that a housing bubble that would soon burst was developing in Canada. Despite the predictions, the housing crash never took place, and it looks as if it won’t happen at all.

 

It is clear that Canada’s housing market was slightly overvalued. However, it was not nearly as overvalued as many had originally thought. While home sales have declined across much of the country, pricing has continued to experience modest increases. In fact, even the bigger cities, where sales have dropped the most, have seen prices go up a decent amount.

 

Toronto has been the hottest residential real estate market in Canada. Prices in the big city have increased by more than eight percent in the past year. Many worry that Toronto will soon face an oversupply issue due to the number of condos in development. However, as Canada’s exports continue to perform well, the majority of those worries are starting to dissipate.

 

One reason why Canada’s residential real estate market seems to be on its way back up is that its exports to the United States are performing better than originally anticipated. The United States economy is showing signs of improvement, which is great news for Canada.

 

There are still worries that certain regions of Canada may see a significant decline in housing prices in the near future. However, many economists believe that the original concerns and predictions regarding a housing crash were drastically overblown. They do warn, though, that the nation should reconsider its low interest rates to avoid the possibility of the formation of an actual bubble.

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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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