Tag Archive | "Canada"

Canadian Real Estate Market Growing Too Competitive

The commercial real estate market in Canada may have grown too fast and too popular for its own good. Investors around the world appear to be looking elsewhere to buy property in the current market, as the market in Canada has simply gotten too expensive one to realize some sort of profit.

Investors are, instead, looking at markets in the recovery phase, as properties in those areas are most likely to bring bigger returns than a market that is nearing, or has possibly already hit its peak. The United States, and various nations in Asia are becoming more popular choices for investors due to their low prices.

Those kinds of markets carry a slightly greater risk than a market like Canada at the current moment, though one could say that it is a calculated risk that will likely pay off quite lucratively in the coming years.

With that in mind, Canada has essentially become a victim of its own success. Areas like Toronto have grown exponentially over the last year, as has Calgary.

One of the factors that caused a decrease in interest by investors is that the nation does not have very many highly populated cities. One only need look at the difference in population between the United States and Canada to realize that there is greater potential for larger growth in the United States. The United States last census report shows that there are more than 311 million people living in the United States. That is almost nine times the amount that lives in Canada. In fact, Canada last reported only 34 million people as their total population.

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Canadian Bank Officials Scoff at Idea of Housing Bubble

There has been a great deal of talk regarding the recent performance of Toronto’s condo market. Sales and Pricing in Toronto’s market have skyrocketed in the past few months, leading to a significant boost in construction. As such, many economists are questioning as to whether the growth is sustainable. They also fear as to whether too much supply is being constructed without long-term demand.


In the past month, the average price rose fourteen percent in Toronto. The market also experienced the most housing starts since 2007. With the majority of the global market in a tailspin, many believe that such a strong performance is indicative of the reality that a bubble is forming. Canadian officials and bankers, however, insist that no such bubble exists nor will one exist.


Not all Canadian experts, though, are so confident. Some have stated that they believe that Canadians are taking on too much debt, and that they will not be able to afford these properties should the market collapse.


Most economists believe that the Canadian market as a whole is overvalued by as much as ten percent. While the majority of Canada has not seen much of what is known as overbuilding, there are certainly some sectors that have. Toronto is one of those sectors that are believed to be overbuilding in the current market.


Despite the fears, Toronto’s housing market has continued to show and prove in its results. Its tremendous increase in the last month defied expectations of most economists, who had believed that the average price would be roughly twenty thousand less.

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Toronto Market Continues to Post Large Gains

The Toronto residential real estate market continues to be Canada’s strongest performer. However, economists fear that the market will not be able to sustain its growth, and may even crash in the somewhat near future.


The majority of Canada has gone through a bit of price correction in the past few months, as residential real estate prices have fallen in just about every Canadian city and province. Toronto, however, has been the exception.


In the last year, residential real estate prices have increased by more than ten percent in Toronto. That is more than seven percent higher than any other Canadian city.  In fact, prices across the nation actually fell during the month of March.


Economists believe that the residential real estate market will fall by just over three and a half percent next year, and just over four percent in 2014. As such, it will be some time before the Canadian housing market shows signs of growth. The drop in pricing is not overly disconcerting, as many economists believed that the Canadian market had become overinflated, and was in need of a correction in pricing.


The residential real estate market of Toronto, however, has been the subject of great concern among analysts and economists. While the market is currently thriving, many fear that it is growing at an out-of-control rate. Prices continue to soar in the city, as consumers hotly pursue the single-family home and condominium markets.


The increased interest in condominiums has spurred an unprecedented amount of new condo construction. Many are starting to wonder if there will be enough buyers to purchase the vast oversupply of new properties. If not, believe that the oversupply could cause a massive decline in pricing.

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Canada’s Real Estate Market May Slow Down

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.

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Housing Market in Canada Not As Bad As Originally Thought

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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Canada’s Housing Market Gaining Strength

According to the most recent data reports, the residential real estate market in Canada is showing signs of improvement. For the first time in two months, residential property prices posted an increase. The average home price rose roughly a quarter of a percentage point, which put prices just over five percent better than they were one year prior.

Analysts and realtors had both grown wary of the housing market in Canada, as it experienced a lackluster finish to 2011. By starting off 2012 on a positive note, there is hope that the market will continue to improve as the year progresses.

Toronto posted the largest gain in residential real estate pricing in comparison to last year. The average price of a home in Toronto increased by seven and a half percent.

While realtors and real estate analysts breathed a collective sigh of relief with the news of the increase, economists and other industry experts warn that the modest gain in January may not be reflective of the overall outlook for this year. Year-over-year gains continue to get smaller, leading many to believe that housing prices will stabilize this year. Most realtors have held hopes that the market would see a strong increase by the year’s end.

Although the prospects for major growth in the residential real estate market are unlikely at this point, the recent gain has provided some hope in Canada, where many people were starting to fear that housing prices might plummet. It appears that the market will not experience the rapid descent that most feared after the rough month of December.

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Canada’s Housing Market May Be Weakening

Officials in Canada are starting to grow worried that the nation’s housing market is starting to weaken. The Financial Minister of Canada reported earlier this week that all signs are pointing to a softening housing market for 2012.

Both Vancouver and Toronto are at the center of the weakening market, as each city has faced problems in recent years with the overbuilding of condominiums and residential real estate properties. Neither city has been able to match the overabundance of supply with adequate demand.

In an effort to combat the deflated demand in the housing market, banks are heavily promoting low interest mortgage loans to anybody who qualifies. However, they have not had a great deal of success.

Canadian government officials have made it clear that they do not plan to intervene in the residential real estate market at this point. Economists have warned them, though, that they must shed light on the situation so as to avoid a crisis similar to that experienced in Europe and the United States.

Current debt levels are fairly high among Canadians, as low interest rates have kept costs down. However, there are clear warning signs that indicate that those interest rates may rise in the near future. Such a situation would cause a serious economic crisis in Canada.

Officials from Canada are watching the current European debt crisis closely in order to determine what kind of effects it will have on Canada’s economy. Perspectives regarding how the situation will affect Canada have been mixed, as some believe that there will be little to no effect, while other economists believe that the impact could be significant if Europe continues to falter.

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Residential Property Price Drop Expected in Various Canadian Cities

Residential Property Price Drop Expected in Various Canadian Cities

New data from the most recent housing report in Canada indicates that many of the nation’s biggest cities will likely face a housing slump in the next two years. Analysts believe that the housing market had been overvalued in recent years, and the market will correct itself in 2012 and 2013.

The city of Winnipeg has been identified as one of the most overvalued residential real estate markets. The data indicates that the city’s property prices are roughly ten percent higher than what they are actually worth, and that prices will soon drop by a minimum of a few percentage points.

Ever-growing fears of a global recession will likely play a significant role in the property sales performance in many of Canada’s cities. Analysts believe that many potential homebuyers will choose to wait on buying a home due to the overall economic uncertainty. As such, the market’s slowdown will cause prices to drop.

Mortgage loan interest rates are also rising in Canada, and will most certainly contribute to the expected slowdown in sales volume.

While analysts believe that the data clearly indicates difficult times ahead for the residential real estate markets in Canada’s big cities, realtors are not quite ready to throw in the towel. In fact, many realtors are expecting the next year to be a strong one for overall real estate sales.

Realtors have good reason to believe that there will be market growth. Another report that was published earlier in the month indicated that Canada’s housing market would jump by three percent in 2012.

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Real Estate Market in Canada Experiences Small Increase

With much of the world experiencing sharp residential real estate declines, Canada’s real estate market has quietly performed moderately well. The average price of homes on the Canadian market has increased by more than five percent since the beginning of the year. In addition, total sales volume is up this year from last as well.

Many analysts are not expressing excitement over Canada’s real estate success, and are calling their numbers average. However, with the majority of the world experiencing below-average numbers, Canadian officials are pleased with the data.

The majority of the regional and city markets in Canada experienced increases in sales during the past month.  Three of the nation’s biggest cities in Montreal, Vancouver, and Toronto all showed strong gains.

When looking at the sales figures from the last ten years, the numbers posted in October were on pace with the overall average. However, they jumped substantially over what they were last year.

One of the main factors benefitting Canada at this point in time is that its economic outlook as a whole is positive. Their economy is not growing as fast as some nations, such as Brazil, though it has continuously increased over the past year.

Buyer confidence as a whole is moderately strong in Canada, as the nation has seemingly avoided any severe negative impact from the threats of the possibility of another global financial crisis.

Residential real estate properties generally stay on the market for six months before being sold in Canada. While that figure is higher than some of the higher performing markets around the world, it is slightly above average.

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Canada’s Housing Market Continues to Improve

While housing markets around the world struggle amidst fears of another possible global recession, the residential real estate market in Canada continues to flourish. Sales are up by more than eleven percent from last year. Prices have also seen a strong increase of more than six and a half percent. The average home in Canada now sells for more than three hundred and fifty thousand dollars.

Real estate analysts from around Canada are calling their housing market balanced with sustainable growth. While both prices and sales have grown from last year, the growth is not uncontrollable and there is no sign of a housing bubble.

Of all the major cities in Canada, Toronto produced the strongest results. The city has remained a popular place for relocation due to its overall economic strength, and captivating culture.

Canada’s residential real estate market has benefitted from low mortgage rates with stringent mortgage regulations. The low mortgage rates certainly attract buyers, but at the same time, the tough regulations limit buys to search for homes within their means. The regulations have played an important role in avoiding uncontrollable growth in the market, which could eventually lead to a real estate bubble.

New homes on Canada’s residential property market generally tend to take about six months to sell, and the sales-to-new listings ratio is just over fifty percent. The fifty percent number is often considered to be a target number for nations looking for a balanced housing market.

Canada’s housing market is expected to continue its current consistent trend. Housing sales and prices continue to remain strong throughout the country, and should continue to be that way into the foreseeable future.

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