Canada: Housing Market Drops
June 16, 2008 8:00 am Information
According to some evidence, Canada’s housing market is been dropping for four consecutive months, at least 15% below than last summer. In the first quarter of 2008, the average resale of home prices declined. And the demand for new residential building and single-family home permit has sharply dropped, and unsold new homes are trending higher. Another factor for the housing decrease, is the inhospitable weather and home renovation expenses are beginning to cost higher.
Canada is making a risk in doing an eventual price correction for its real estate market. While inventories of unsold houses are getting high, market for this is not overbuilt, wherein new houses built are regulated. Also, Canadian lenders have maintained a conservative loan qualifying criteria and sometimes an adjustable mortgage rate, to help lessen foreclosure.
(image source : nationalpost.com)