If you’ve watched the evening news or read the paper you are sure to be confronted with some conflicting ideas about how the housing market is cooling down and what our future may hold. Today I’ve pulled together three different articles posted within the last week as a recap.
“Housing market cool down widespread across Canada”
The article posted yesterday by the National Post reports that nearly three-quarters of the Canadian real estate market has experienced a slowdown in sales. For the most part the slowdown is due to changes in mortgage rules that make it harder for most first-time buyers to break into the market. In August, 21 out of 28 metropolitan markets reported a drop in sales from July. Of those markets, 16 experienced a drop of 5% or more. As the market softens home owners are reluctant to list their homes as evident in 17 of the 28 metropolitan markets experienced drops in listings.
Read the full article at The National Post for more details.
“Risk of Canadian housing bubble appears to be easing”
An article published by The Globe and Mail at the end of last week speaks of the effects of the Canadian market cooldown outside the scope of just current and hopeful homeowners. The article shares that the cooling of our housing market will be a positive for ensuring the stability of the Canadian banking system and also help the sustainability of economic growth. However, it is still unclear what the full extent of the housing correction will look like.
Red the full article at The Globe and Mail for more details.
“At worst, housing market headed for soft landing”
Another article published by The Globe and Mail features an interview with the CEO of Scotiabank who clearly states that despite the Canada real estate bubble he doesn’t expect the residential real estate market to crash. The worst case scenario, he predicts, is a soft landing. The article continues to discuss how tightening of mortgage laws earlier this year helped to cool the real estate market particularly in Toronto and Vancouver real estate where the markets were overheating.
Read the full article at The Globe and Mail for more details.
Despite what you read in the newspapers or hear on the news it is extremely important to remember that real estate is very localized. What our local market are doing here in Surrey, White Rock or Langley is a unique situation and needs to be assessed on an individual basis.
If you would like to talk about the real estate market in terms of your assets and planning I would be more than happy to meet with you. Simply give me a call at 778-316-4290 or drop me an email at Natasha@vancouverrealestatesurrey.com.