Canadian Real Estate Experiencing a Real Correction?

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A special report from TD argues that Canadian housing prices are to remain flat for the next decade dispite the fact that gains in the past decade have proved to be quite strong. This is in sharp contrast to the prediction by many industry analysts that the Canadian housing market was in a bubble and was going to experience an enevitable collapse.

An article by the Calgary Herald, mentions that there seems to be many different opinions about how much of a correction the Canadian housing market is going to experience. Given the fact that a correction will indeed occur, just how much of a correction is the market going to experience?

Capital Economist predicts that this correction could be as much as 25% while TD’s chief economist Craig Alexander outlines that the market could correct itself to as much as 8% over the next three years but he also added that prices might not go down as much. Alexander also notes that the problem with the the predictions of a huge collapse lies in the fact that the spark required for such a collapse, like a sudden spike in unemployment or interest rates, are really unlikely to occur at this point in time.

Before You Buy

Buying or selling a home can be a very stressful time, and this is made even more stressful with all the developments of whether the Canadian real estate market is going to experience a correction. If you are on the buying side, Zoocasa’s Before You Buy section has a great article on Shopping For A Mortgage. See below for an excerpt:

There are several benefits of shopping for a mortgage online. When researching online, you’ll have instant access to resources, the ability to easily compare mortgage rates, and you can use a free online mortgage calculator to know what rates you can expect. As well, there are many reputable online mortgage brokers waiting to help you if you can’t fin one to assist you locally. Here are a few more reasons to show for a mortgage online:

Fast, easy and accessible: Thanks to online mortgage nrokers and the need for companies to be online in today’s market, home buyers can now access mortgage information immediately online…

Click here to read more.

About Aaron Joshua Barroso

Marketing at Zoocasa, Brokerage.

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