Canada Or USA Property Market - Maple Leaf is Healthier

Surprisingly, the housing market rebounded sooner than anyone expected. In the spring of recent year, Canada saw the about face of the housing market, we noticed sales figures continuing to shoot up in the following months. When we look at the winter months we notice an even larger increase with reports of over a 100% jump. Not only did the figures jump back but the average price overtook the pre-crash figures.

There are many reasons, why the Canadian housing market did (and and is still doing) better than most of the world's real estate markets. Speaking to the specialists, many say that this recovery is primarily due to the low interest rates put in place by the Bank of Canada. US rates were comparatively low as well, but there are reasons why the low-rate policy was supportive in Canada but not so much in the States:

The US market had lots of loans were the borrower did not have an optimal credit score, as a result the lending was very risky. Canada gave these subprime deals to between 5 and 10% of the country, unlike the US who's subprime loan market was a massive 22%.

The World Economic Forum constantly state that the banks in Canada are are the most secure in the World. This institutional stance helped to deflect the following credit crunch.

Canada Or USA Property Market - Maple Leaf is Healthier

Although jobs were lost and the unemployment figures increased, the figures were not as terrible as they were in the US and recovery has been seen since Summer. In addition, Canada's social system helped to lessen personal bankruptcies.

In conclusion the Canadian housing market is unquestionably very solid. Where there is good news, some people look to the negatives and say that a property bubble completely separate from what has gone on, is about to hit us. Privately I don't think this is true and here is why.

The Bank of Canada gave word to keep rates even until summer. Rates will grow as summer arrives and we have already seen some mortgage rates increasing a little. We are also coming closer to the finish of the First-Time Home Buyers' Tax Credit, which is in all likelihood going to have an impact on the housing market. We also have seen, the shortage of new listings, which we have been enduring since the autumn of last year, is slowly letting up. Over the last few months, the property market has seen an increase of new listings on property agent's books, which has balanced the situation.