Another positive report on Ontario housing says that the demand and pricing of housing in Ontario will continue to remain strong through the remainder of 2012.
According to the report:
“With a warmer than expected spring and improving economic conditions throughout the Oakville real estate market and Canada, the Canadian Real Estate Association now expects an almost 4% increase in housing sales nationally through 2012. Initially the CREA only expected a very modest increase of 0.3% nationally, however, it is now believed that an upwards of 475,800 homes will be sold throughout the country this year compared to 457,000 homes last year. “
Now the report was issued by a realtor, but based on CREA stats. Speculation has interest rates beginning to rise in the latter part of 2013, but rates are near record lows, so even if they rise a little they may just get closer to historical equilibrium. Canadians still have some time, it seems, to “get their house in order”.
Statistics have been bandied about recently in the media about how Canadians are in debt about 150% of their income. I think that is alot better than many nations around the world including the U.S. of A! By all accounts, the United States is bankrupt, and yet they are still in business and getting low interest loans from China and other nations, as well as printing more money. So if the going gets rought, Oakvillians can always get one of those money printers in their basement like the U.S. government uses :).
Most kidding aside, if you read Yahoo news over the last few years there have been dire predictions for housing in Canada. Even throughout our news we have been hearing about the imminent correction in housing, but it has not materialized. The latest naysayers are calling for a 15% correction. Maybe prices will continue to climb as they have done over the past couple of years so that when the 15% correction comes, it will just roll back the 15% housing has appreciated further after these reports.
If you plan on living in your home for awhile, then home ownership still makes great sense (cents), especially when you can sell a home and not pay any capital gains tax on the increase in value (whereas in the States a tax is payable). Of course, recently home sellers in the States may not have needed to worry about making a profit on the sale of their home :(.
On the bright side, Canadians have been snapping up bargains south of the border. An entire contingent in the States has been marketing to Canadians who have invested in the U.S. housing market recently.
Nobody has a crystal ball, but it seems the worst had hit Canadian housing in 2008-2009 after the worldwide calamity that was nearly the Great Depression. European issues and other problems may just be the long term ripple effects of the billions of dollars of phantom funds in everyone’s portfolios that got called at the height of Wall Street greed. Congrats Canada for having a relatively sound banking system and a relatively strong housing market in a low interest environment.