This is an article from Scotiabank and CBC. It talks about the fact that the real estate boom of the past 12 years is over. We agents have know this for about the past 6 months or so, it just took a while for the press and the public to see the results of our slowing economy.
I wish you all the best!
Canada's housing boom over, but no collapse in sight: BNS
But, this country will not see plunging home values to the same degree as other, more at-risk nations, like the
"This is not a 'U.S.-style' bust caused by overbuilding, speculative buying and imprudent lending," she wrote.
Essentially, the slowing global economy will crimp buyers' interest in home purchases across
"We expect that the correction in national average prices from their late-2007 peak will probably be in the range of 10-15 per cent, well below the ongoing
Falling prices - Housing starts - Region 2009 forecast Change from peak (%)
Canada 185K -19; B.C. 32K -18; Alberta 30K -39; Ontario 65K -24 Source: Scotiabank
In October 2007, the average price for a Canadian home was $312,024, according to the Canadian Real Estate Association.
If Scotiabank's prediction comes true, the average house price should reach a bottom somewhere close to $260,000, a drop of a further 7.5 per cent from the standard of $281,133 for a house in October 2008.
Her rationale for calling the end of
Urban areas in the especially red-hot region of Western Canada, like
Better off than the
Thus, while the Canuck housing market will drop in terms of prices and activity,
Interestingly, Canadian home prices never reached the stratosphere achieved by other markets.
Housing indicators - Country Price change '97-'07 (%): Price-to-income ratio (%)
Home prices in
As well, housing prices in some countries now represent more than a household's annual income, a measure of affordability.
Based upon valuation measures used by the International Monetary Fund, Australia, the United Kingdom, Spain and Ireland are likely to experience a more depressed housing market in the coming year than will Canada, Warren said.
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A. Mark Argentino
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