Canada In A Real Estate Bubble?
The low interest rates that have been implimented to ward off the recession in Canada and especially the United States may have set off a mini housing bubble.
Canada’s real estate market has not suffered as much as the United States market has. But with the economic turmoil of it’s southern neighbor, they have been able to benefit from the low interest rates and as such has seen housing prices skyrocket.
Let’s hope they have a better outcome than we have to the south.
“It is premature to talk about a bubble in Canadian housing markets,” Wolf said today in Edmonton, Alberta. “If the Bank were to raise interest rates to cool the housing market now – when inflation is expected to remain below target for the next year and a half – we would, in essence, be dousing the entire Canadian economy with cold water, just as it emerges from recession.”
The lowest mortgage rates since the Korean War helped fuel a 67 percent jump in existing home sales in November from their January low, with the average price up 19 percent from a year earlier to C$337,231 ($326,600). The Bank of Canada cut its benchmark lending rate to 0.25 percent in April and has committed to keeping it there through June unless the inflation outlook shifts to aid a recovery. via Bloomberg
My wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
I see the question I have, but no response. I do not have a for sale sign up ...
Comment by Manny on 12 January 2010:
It’s simple…a real estate market is sustained by the economic fundamentals it is in. So it is dependent on jobs, growth, immigration to the region,higher wages etc.Canada has a very strong economy and I believe will be a world leader for many years. Canada didn’t have a single bank failure in the recent worldwide economic collapse. That is very impressive!
Comment by HBInvestments on 12 January 2010:
True…I agree with Manny.