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2012 and Beyond, Opportunities Bountiful in Canadian Real Estate

By: Marcel Bates
Date Added : November 30, -0001 Views : 12
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The buzz word of the day is bubble. When it comes to the Canadian real estate market, it’s tough to not find someone claiming the real estate market is overpriced. Is it overpriced or just expensive?

Real estate is heavily impacted by supply and demand and local economic factors. Vancouver, one of the few places in Canada I would actually call expensive and overpriced was overpriced and expensive in my view 10 years ago, I was wrong. As for the rest of the country, the housing prices seem to be in line with realistic supply and demand. That is taking into consideration today’s housing requirement and economic environment.

In Canada though, we have other forces in play. A large country, a small and aging population is all contributing to the requirement of a steady stream of immigrants. As the world grows larger the number of people wanting to move to Canada grows. We are now are increasingly more receptive to the young and highly educated and those who are able to bring wealth into the country.

Much of the fear that analyst speak of with changes in housing prices revolve around the global economic outlook and its impact on Canada. The US, one of Canada’s largest trading partner collapsed 4 years ago, Canada’s real estate market took a pause. This pause was driven only by fear that the economy would change, it didn’t. As the US housing market shrank from oversupply, home prices in Canada have risen over the last 4 years.

With Canada’s stable economy, affordable homes and long term growth through immigration policy in place, Canada will continue to be a great place for real estate investment over the next decade.

Lawrence Kobescak is the author of this article on Bank mortgage rates. Find more information on Best mortgage rates here

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