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The end is neigh for the Canadian Real Estate Market - 'NOT'

By
Real Estate Agent with RE/MAX Crosstown Realty Inc


Barrie home prices

I get the sense from the news stories this week that Canadians are in for another run of doom and gloom national headlines predicting drops in Canadian real estate prices.

TD Bank is predicting a quieting of the market and value drops for homes due to changes in lending rules, increased lending rates and slower job growth. The first two points TD sited in an article the other day happened over a year ago and as for job growth, it has fluctuated for at least the past two or three years.  None of the above has dramatically impacted on home prices so far, at least not in Barrie Ontario.

Buried within the story if you read beyond the first few lines is the fact that Toronto and Vancouver are the main focus of their forecasts.


If and when we see home prices going down anywhere in Canada it is sure to be in these two most over inflated markets, that in and of itself is not breaking news,

Toronto and Vancouver have seen prices driven to ridiculous levels for many years now mainly in response to money coming in from outside of the country by way of new Canadians. Condos have been popping up like garden gnomes in these cities as eager developers try to stay a step or two ahead, but supply is beginning to outstrip demand and real estate pricing is about supply and demand over all other factors. You don't need to be an economics major working for a big bank to know that.

These two markets have been quite removed economically from the rest of the country for decades and are over due for a correction but it is highly doubtful that this will have any noticeable negative impact on housing values elsewhere.

I question the standards for financial journalism when I see national market numbers that include Toronto and Vancouver and don't point out that the numbers they feed us are dramatically skewed by these two markets. Barrie home prices increased an average of 2% in the last year while Toronto and Vancouver have seen double digit increases. 

Canadian home prices

For some perspective consider that on March 22nd the temperature in Barrie was -3 degrees Celsius, In Vancouver it was +15, therefore the average temperature between the two was +6.  That average has no practical application in selecting your wardrobe for the day does it? Real Estate markets like the temperature are regional events.

The ongoing troubles in the US economy and housing markets have had little impact north of the border to date and as a nation we have many of the resources the world will need at ever increasing rates over time, food, fuel, forestry, fertilizer and fresh water will keep Canada financially healthy for some time yet.

Keep in mind too, there are often financial agendas behind many of the "expert" predictions which are dealt like crack to national news paper editors.  

Y2k made millions for some, acid rain, a global ice age, and killer bees oh and for those of you who have been drinking six to eight bottles of water a day you can stop now, a litre to one and a half litres per day is all the body requires, you are not going to live any longer or be any more healthy for trying but the bottled water companies who have been telling us to are grateful none the less.

 

 

 

Posted by

 Mike Montague

  

Barrie Power of Sale Listings

Barrie home values

 

 

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