Real Estate In Canada: Help And Advice
If you’re concerned regarding the media warnings of the “bubble” bursting in what is commonly known as “The Canadian Real Estate Market.” I ask you: What precisely is a “Canadian Real Estate Market?” Provinces, cities, towns, and even neighbourhoods all differ. Property prices in Vancouver, BC are very different than in Windsor, ON. Both cities are Canadian but they have about a $700,000 gap in average house prices. Real estate growth in King City, ON is substantially different than Toronto East (yet they’re only 45 minutes apart). With changes so vast within such much little geographic places how can the media summarize all real estate activity in a single category (The Entire Nation)?
My personal and professional belief is the fact that a microeconomic approach is a far safer way to understand the true underlying real estate action as it pertains to realistic purchases and activities. Unless you’re a global investor comparing Canada to the rest of the planet, then it will not do much good to review data on Canadian market activity as a whole. Even if you’re a international investor, it is best to pinpoint a few locales and research their performance individually rather than collectively.
So, then what’s this market and when will it burst? The response to that’s regrettably NO ONE UNDERSTANDS. We’ve been hearing about this for the greater part of 5 years yet we’ve yet to see it. Interest rates continue to be steady and for the first time in modern Canadian history three major banks have offered the lowest fixed mortgage rates ever (2.99%).
With low rates of interest plus a flourishing immigration system bringing in the right combination of subscribers to our economy, real estate is a fantastic investment (provided individuals are willing to hold on if the market dwindles a little). The question is how long must people hold on? Whether or not people wish to believe it, we (Canadians) will probably not experience the same home fiasco our friends in the US experienced. This website covers Eddie Yan more thoroughly. Even if we use this microeconomic approach for a US home performance evaluation, we’ll find that not all US cities have experienced this substantial downturn and that many cities weren’t hit very hard and are rallying quite well. Once again, an all encompassing categorization of real estate functionality by state does not even apply to the current US catastrophe. Consequently, how can it be used to assess a much more fiscally reasonable and culturally diverse country like Canada?