Canadian property prices under pressure

Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
While Mark Carney, the Governor of the Bank of England, continues to enjoy his honeymoon period it seems that the situation left behind in Canada may not have been as rosy as many would have you believe. A number of high-profile real estate investment funds have been talking very cautiously about the Canadian real estate [...]

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dcmhomebuyers112

New Member
If Canadian homebuyers had a nickel for every report that came out about the country’s housing market, they probably wouldn’t need to bother applying for a mortgage. From banks and ratings agencies to magazines and think-tanks, predictions about Canadian house prices seem to be a national – and international – pastime.
 
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victorharvey

New Member
I have read this story but i can't find much information regarding the same.
 
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Jamie Maru

New Member
The cost of owning a home has been holding steady in most parts of Canada, but affordability declined during the second quarter in the two most expensive markets, Toronto and Vancouver, a report by Royal Bank says.

In its latest analysis of housing trends, RBC also said Monday it expects prices will continue to rise in those two cities in the short term because of tight supplies of detached homes for sale.
 
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nmb

Well-Known Member
I would ask the simple question, how long can prices continue to rise? The local affordability factor will obviously come into play and the impact of overseas investors. Is the government handling the situation correctly or should there be more new builds in the short to medium term?
 
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Acres and Anchors

New Member
Prices have been rising because Chinese have been parking their money in the West Coast market at the expensive of locals. With China now collapsing on itself, I'd say the global glut is going to affect the canadian market.
 
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nmb

Well-Known Member
Surely there is a limit to how high any property market can go with regards to the affordability factor? It would be very dangerous for the market to be at the beck and call of foreign investors having left domestic investors behind. This is a long-term balancing act for the Canadian government but I don't envy them as it will be very tricky.
 
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danielmartin3e

New Member
Thanks to sharing this useful and important post with us.
 
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lookinginvest

Member
Until recently I have always seen Canada as the “poor cousin” of the USA. However, times seem to be changing!
 
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nmb

Well-Known Member
The days when Canada is seen as the poor cousin of the USA have long gone with a strong economy and a government not afraid to take tough decisions on austerity and cost cuts. However, it would appear that some areas of the country are experiencing strong demand for property which has pushed some prices to levels which are surely unsustainable in the longer term. However, didn't they say this about London property prices?
 
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