Is Canadian Real Estate Market Aimed Toward Home Owners Or Buyers
If you're a home owner in Toronto, should you sell or stay put? Lately, there has been a great deal of debate in the nation of Canada concerning whether its domestic real estate market is ultimately more friendly to the needs of home owners or prospective home buyers. While there are strong arguments to support taking either side of the dispute, it's also true that there has lately been a wealth of phenomena that points to the existence of a "housing bubble" that has many industry experts very concerned.
If A Housing Bubble Exists In Canada, Will It Burst Anytime Soon?
Many industry experts in Canada are coming to believe in - and greatly fear - the existence of a potential "housing bubble" that is very similar to the one that disrupted the American real estate market during the crisis of 2008. If such a bubble exists, it will be very bad news for home owners all across the nation, but perhaps nowhere worse than in the two great metro areas of Toronto and Vancouver. Home owners in both cities have benefited from a great increase in home values, but the resulting figures have been criticized as unsustainable for the future.
Are Home Values In Toronto And Vancouver A Sign Of Impending Crisis?
Home values in Toronto have reached the astonishing average of $1.5 million (predicated on the value of a detached house), while values in Vancouver have recently hit $1.3 million. What do these figures represent for industry experts? It may be interesting to note that major Canadian banks, such as Scotiabank among many others, have recently undertaken the unprecedented measure of voluntarily limiting the amount of new home mortgages that will be available to prospective home buyers. The fact that this measure is indeed voluntary, rather than enforced from outside, is troubling, to say the least.
Has The Canadian Real Estate Industry Recently Changed Its Tune?
It is very noticeable that these remarks seem to signify a change in the attitude of leading experts on, as well as participants within, the greater Canadian real estate industry. In fact, many of these latest pronouncements seem to flatly contradict the attitudes that were seen as commonly received wisdom concerning the industry only a few short years ago. Has something truly happened since then to make the majority of real estate experts change their tune in such a radical fashion?
Are Home Owners Dealing With A Bubble Or Just A Balloon?
Just over two years ago, when homes in the Vancouver area first began to be priced and sold at their current level, most reputable Canadian real estate experts were quick to dismiss any looming reports of anxiety over the possible existence of a bubble. In fact, many experts preferred the use of the term "balloon." Their apparent intention was to paint a picture of a situation that had the strength to stretch out to an apparently limitless amount without ever "popping" as a bubble will eventually do.
As Always, The Truth is Somewhere In The Middle
Canadian home buyers and owners alike should take care not to contribute to any of the leading factors that normally presage a bubble burst, i.e., unrealistically inflating their home values, as well as settling for such artificial prices. However, it is also important to note that one man's burst bubble is another man's freshly leveled playing field. While a bubble burst could have disastrous effects for the present market, it could ultimately be the prequel to a whole new realm of opportunity for cagey home and property buyers.