Canadian Housing…Soft Landing Or Hard Crash?

<<<=====Share on Facebook Here   

                         If you Like, RETWEET HERE============>>>>

Canadian Housing Predicted to Continue Nosedive

Since 2007 there has been an almost continuously optimistic feel to the Canadian housing market. Even when there were little gyrations (and there were plenty of those) the market tended to swallow them up, regain its feet and keep going. That looks to be changing.

Since the new Canadian mortgage rules have taken effect in Canada in July, there has been a real chilling on the prices of housing in most markets in Canada. The government who instituted the changes to the rules in order to cool down the market should be happy. Job done. Well maybe not so fast.

canadian housing

The whole thrust of the cooling down was to dissuade marginal purchasers from getting into housing that they could ill afford to hold onto should the inevitable rise in interest rates occur. That in turn was to help Canadians reduce their overall debt holdings and leave them in a better over all financial situation. It hasn’t worked. Canadian household debt remains at record highs and continues to edge upwards. Canadian housing prices have cooled and are getting colder with prognostications that we are about to go from the fridge to the freezer with housing prices.

Canadian Housing Bubble Burst?

Predictions almost all point to a 10-15% decrease in house prices over the next 2-3 years. The most negative predictions are for a 30-40% decrease, and that would be more of a crash landing than a soft nosing in that most would like to see. Canadian housing has always been tricky with such diverse markets and geographical limitations and that trend is sure to continue. Most people will be relatively unaffected by the change in market values, except for one notable group.

Any homeowner with a sizable mortgage and who has to sell and move is going to be on thin ice. The days of living in one location for a lifetime have pretty much expired with the last generation that was able to experience that phenomenon. Anyone who has taken out a mortgage of the 5-10% down in the past five years could be in for quite a shock. Odds are the sale of their home will barely cover the cost of the sale and the mortgage payout, leaving them far short of the down payment that they will require for their next house. One more renter joins the fray.

If Canadian housing values continue to fall to the worst forecasted levels, then there are a lot of people that have 15 or even 20% equity in their homes that will be joining the rental pool as well. Sadly, their equity will vanish into thin air, but the government will have attained their goal. With some unintended consequences as well. Sorry about that folks, not everyone wins. Not this time.

Till Next Time….

<<<<< If you enjoyed this post, take a sec to share, tweet, and Google+ it so that others can benefit from it, too. Also, be sure to leave me a comment below.

Sigrid McNab

Skype: sigrid.mcnab


Work with Me- UsanaHealthSciences


PS: If You Are TIRED of Chasing Clients, Check This Out – Click Here

Related Posts Plugin for WordPress, Blogger...
, , ,

About Sigrid McNab

Sigrid McNab is the author of #1 Amazon Best Seller, speaker and the CEO and Founder of Sigrid specializes in blogging, attraction marketing, and generating highly qualified leads. Sigrid teaches people how to build a successful online business.

View all posts by Sigrid McNab

2 Responses to “Canadian Housing…Soft Landing Or Hard Crash?”

  1. Dagmar Wichary Says:

    It is so sad that some people will lose their home, because they cannot afford to pay the Mortgage and cannot sell either because the prices have dropped so much. I know the prices were too high, but it is unfortunate that this is happening now.


    sigrid Reply:

    Dagmar you are so right that these are tough times for many people…



Leave a Reply

CommentLuv badge