Strong Canadian housing market for 2007!
By ebizniz on July 7, 2007 - 9:13am
An article by :Vancouver Home Mortgage
Will the strong housing market last?
Today, Financial Post’s article "Canadians' appetite for real estate confounds experts" high-lighted the strength and consumers’ demand for housing in Canada.
Other than the expected moderate interest rate increase in Canada from now to the end of the year, there is little adverse news that will dampen the confidence of house buyers.
The US housing slump and the increase in foreclosures have little or no effect in the Canadian housing market so far. With house prices more than double over the past few years, there are concerns that we are already at the market top.
While the number of new listings may have increased slightly over the past 2 months, there is no softening in the median selling price of houses month-over-month. Many analysts are projecting a strong housing market for Canada well into 2011.
The report quoted Royal LePage Real Estate Services projection that “Robust conditions are expected to prevail through the year as all regions experience a rise in average house prices, with double-digit gains in Edmonton, Calgary, Winnipeg and Regina. The national average house price is forecast to rise by 9.5 per cent, passing the $300,000 mark for the first time, to $303,300″.
Other areas in Canada that have not experienced the strong housing market price gains in the past few years are now catching up with large price appreciation.
Many Canadians living beyond their means!
In another article, "Consumer debt crunch feared", economists are raising concerns on the expected increase in interest rates from now to early part of 2008.
As a result of the credit boom of the last five, six or seven years, Canadian consumers are enjoying much higher level of credit exposure. Many highly indebted consumers will not have the financial resources to handle a downturn in the Canadian economy.
A slow down in the Canadian economy is expected as the gain in Canada’s dollar was not matched by higher productivity growth.
As a result of a strong Canadian dollar, softening labour market and higher interest rates, a gradual rise in the number of personal bankruptcies over the next 6 to 12 months can be expected.
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