Eric Beauchesne, Canwest News Service Published: Thursday, May 15, 2008"
Here is a quote from Scotiabank economist Adrienne Warren
"Unlike in the U.S., home prices in Canada are not substantially overvalued, the real estate market is not overbuilt, households are not over-leveraged and overall mortgage quality is still sound, she said."
Click here to read the full article.
Can this be true in major Greater Vancouver city centers like Vancouver, Burnaby, Richmond, Coquitlam, etc. that house prices will continue to move up?
At local level, the Greater Vancouver real estate market especially new condos may face serious selling and pricing pressure due to high prices, more inventory and changing home buyers psychology. Any cooling or correction in the market will drastically reduce the demand thereby depressing house prices. Click here for current real estate information in Richmond, BC.
If sales drop off substantially, more selling pressure could result in home prices correcting by 10 % or more. The April benchmark prices as reported by the Real Estate Board of Greater Vancouver for detached houses, townhouses and condos were $771,321, $477,900 and $389,070 respectively.
James Wong Richmond BC Realtor > Richmond Remax Realtor> Remax Westcoast > Richmond homes for sale, Richmond BC townhouses, Richmond BC condos > Vancouver mortgage broker > Richmond mortgage broker.
Canadian economy loses 18,700 jobs in December
Richmond BC Housing Market > December 2007
Beautiful British Columbia > Vancouver Real Estate
Richmond's Million dollar Homes > Richmond MacMansions
CRUNCH TIME FOR AMERICAN CONSUMERS
BC Real Estate Market - What To Expect for 2008?
Richmond Rapid Transit System > Richmond Real Estate
BC Real Estate > BC First-Time Homebuyers
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
Sounds like the market up north of the border did not overheat as much as our market down south.
It may be a matter of time before the Canadian real estate market align with the economic reality of "fair return on investment" expected by home owners/real estate investors. In the major city centers around Greater Vancouver, it is cheaper to rent than to own.
I think when house prices stop going up, some home owners will unload their investment properties, accelerating the decline demand and house prices. Speculative investment in Vancouver was reported to form more than 25% of the purchases over the past years.