Transitions-Oakville, Burlington and Mississauga Real Estate Blog: January 2008

Real Estate blog about property, home buying and selling, life in Burlington, Oakville and Mississauga Regions of Ontario, Canada.

When Greed and Mis-Placed Trust Come Calling~Will The U.S. Real Estate Market Bring Canada's Down With It?

The U.S. real estate market continues to be plummeted by the sub-prime mortgage Canada's Parliament Buildingfall-out and the question I get asked most often by home-sellers these days is "Will we be affected negatively by what is taking place in the U.S.A.?"

I assure anyone I'm conversing with that Canada's real estate market and economy is alive and thriving.
The Canadian employment level is at an all-time high and current interest rates are very stable and appealing to home-buyers. There is an abundance of buyers and a shortage of listings, particularly for first-time buyers.

The sub-prime mortgage fall-out which the U.S. is experiencing, will not occur here as, contrary to that in the U.S., high-ratio mortgages (80% of the property value or higher) from Canadian financial institutions must be insured.
Additionally, sub-prime mortgages represent only 5 % of the Canadian mortgage market as compared to 22 % or more in the USA. To understand what is taking place in the U.S.A., take a moment out to watch this video from 60 minutes which aired last night.
In the article, take a close look at the map and it will give you an idea of just how all-encompassing this debacle has become.

Canadian real estate values, although their rate of increase has slowed slightly, continue to rise and will likely continue to do so over the next 2-3 years.
At that time, we may begin to experience a leveling off of prices once the impact of the coming recession in the states begins to take hold on our manufacturing and export market.


The truth of the matter is that the sub-prime mortgage write-down in the U.S. is currently at a point of over 100 billion USD.
That amount is expected to triple before they begin to see a change in a positive direction.
When we are dealing with figures as high as this, the global economy will feel the waves and along with it, Canada's economy will be impacted.

Canada is in an excellent position, globally, with vast reserves of highly valued and in demand resources such as oil and minerals. Our labour force is strong and our educational system is one of the best in the world.



Canada's strong commodity markets will continue to grow and this will bring a steady rise in property values for the four western provinces.

With close to 80% of all of Canada's exports destined south of the border, a major economic slowdown in the USA will mainly affect the central provinces and the greatest leveling out of real estate values will be felt in Ontario and Quebec.
However, I anticipate Ontario's property values will continue to rise in the coming years due to the steady growth of the population and the balancing from Canada's commodity and energy sectors.

It's an excellent time for buyers to purchase right across Canada with low interest rates, a steady inventory of reasonably priced properties and an economy which will continue to remain strong and show significant growth in the coming years.

©2008JoSmith

 

Jo-Anne Smith, the author of this article, is a REALTOR® with Royal Lepage Proalliance Realty, Brokerage, in Belleville, Ontario and welcomes your real estate inquiries. To contact her, visit www.QuinteRegionRealEstate.com


There You ARE!  I've Been Waiting For You!!!
Let's Get to Know One-Another:

Comment balloon 29 commentsJo-Anne Smith • January 28 2008 06:19AM
When Greed and Mis-Placed Trust Come Calling~Will The U. S. Real…
share
The U. S. real estate market continues to be plummeted by the sub-prime mortgage fall-out and the question I get asked most often by home-sellers these days is "Will we be affected negatively by what is taking place in the U. S. A.? " I… more
Banish Cabin Fever With Belleville and Quinte Area Events~January…
share
There's no need to come down with cabin fever in the unusually snowy weather we've been experiencing in the Quinte and Belleville area this winter. Our communities abound with activities and events for every different age group and interest. On… more
Investing in Canadian Real Estate~Waterfront and Recreational…
share
Canada, big, beautiful and looking good with a great future for investors, both personal and business. Of the G8 countries, Canada boasts not only some of the most attractive, desirable real estate, it can also still be purchased at a VERY… more
Buying Your First Home in Ontario~Step One, Choosing a Real Estate…
share
It was winter and the back yard appeared to be many small rolling hills of picturesque, sparkling white beauty. Little did we know, when we decided to purchase our first home so many years ago, that those small hills were actually piles of trash… more
You've Placed Yourself in a Position of Leadership~What Kind of…
share
It is said we remember moments in our lives, we do not rem ember days or weeks or years. Every time I hear the word 'leadership ', I'm taken back to the stuffy 10th grade classroom I was sitting in and see, once again, my teacher's face as he… more
Land Transfer Tax Rebate-Rebates For the First Time Homebuyer in…
share
Residents of Ontario, Canada who have never owned a home before, can now heave a small sigh of relief if they're thinking of embarking on the path that leads to home ownership. The McGuinty government has just introduced a tax relief measure for… more
The Mustard Seed Called 'YOU'… And How It Flavours Your Business and…
share
In the midst of winter, I sit here and think about mustard seeds. How much I enjoy them, their taste, their golden glow and sphericalness and most importantly, their synergistic qualities. Mustard seeds are a very unique little treasure of the plant… more
Great Expectations… Do We Really Have to Supercharge Ourselves!?
share
The wind is howling outside my window as I type this blog. It's a VERY cold night here in southern Ontario; -23C (-10F) and I'm looking forward to my cosy bed piled high with warm blankets and a good book. Today was a good day, however I was having… more