In the event you are concerned regarding the media warnings of the “bubble” bursting in what’s often known as “The Canadian Real Estate Market.” I ask you: What precisely is a “Canadian Real Estate Market?” States, cities, towns, and even neighbourhoods all differ. Property prices in Vancouver, BC are extremely distinct than in Windsor, ON. Both cities are Canadian but they have about a $700,000 gap in average dwelling costs. Real estate increase in King City, ON is substantially different than Toronto East (yet they are just 45 minutes apart). With changes so vast within such much small geographical places how can the media summarize all real estate activity in one group (The Entire Country)?
My personal and professional belief is the fact that a microeconomic approach is a far safer strategy to comprehend the true underlying real estate action as it pertains to realistic purchases and activities. Unless you’re a global investor comparing Canada to the remainder of the planet, then it won’t do much good to review data on Canadian market action as a whole. Even if you’re a international investor, it’s best to pinpoint a few locales and research their performance individually rather than collectively.
So, then what’s this market and when will it explode? The answer to that is regrettably NO ONE UNDERSTANDS. We’ve been learning about this for the better part of 5 years yet we have yet to see it. Interest rates continue to be steady and for the first time in modern Canadian history three leading banks have offered the lowest fixed mortgage rates ever (2.99%).
With low rates of interest plus a flourishing immigration system bringing in the best mixture of contributors to our economy, real estate is an excellent investment (provided individuals are willing to hold on if the market dwindles a little). The question is how long must people hold on? Whether people need to consider it, we (Canadians) will probably not experience the same housing fiasco that our pals in the US experienced. Read more thorough information regarding Eddie Yan here. Even if we use this microeconomic approach for a US housing performance evaluation, we’ll find that not all US cities have experienced this significant decline and that many cities weren’t strike really hard and are rebounding rather well. Once again, an all encompassing categorization of real estate functionality by state does not even apply to the current US disaster. Hence, how can it be used to assess a much more fiscally reasonable and culturally diverse nation like Canada?