Canadian real estate markets are far-better positioned than their American counterparts for a good number of reasons.
- Subprime mortgages represent less than five per cent of our market nationally.
- Foreclosures occur in about one quarter of one per cent of mortgage transactions in this country.
- Canadians have more equity in their homes.
- We have less debt than our neighbours south of the border.
- Speculation has played little or no role in existing home sales in Ontario.
- The fundamentals of our economy are relatively solid. Of the G8 countries, only Canada is expected to show growth in 2008 and 2009.
- The Canadian banking system is one of the best in the world, relying more on old-fashioned lending than innovative financial products geared toward profit.
- The Canadian job market is stronger than the US, adding more than 200,000 jobs so far this year.
- Interest rates remain favourable.
- Housing values in Ontario major centres did not experience serious, double-digit price appreciation year-after-year for an extended period. Our markets were characterized by stable, healthy growth.
- Immigration continues to play a key role in housing markets. Between 2001 and 2006, more than 1.1 million immigrants came to this country, with about half settling in the province of Ontario. Immigrants tend to purchase a home within the first five years of living in Canada.
Real estate is cyclical. There will be peaks and valleys. The more restrained the peak, the more modest the valley.
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