Is there a Housing Bubble in Canada…..will it burst in 2012…………?
The collapse of the US Housing Market has found Canadians, over the last few years, fearful of what has been brandished as a "housing bubble" and many are sitting and waiting for the bubble to burst in our homeland just as it did in the US. Well wait no longer as it is predicted with much certainty that the bubble will not burst but simply float a little closer to earth in 2012. (Globe & Mail)
"The Economist" has stated that our Canadian homes are overvalued by as much as 25% or more. This, I would guess, is for the most part, the blame of a very good run of a sellers market in Canada throughout the late 90's and into the 2000's. It is predicted that the bubble will now likely plateau in 2012.
New housing starts will be priced more reasonably and resale homes will bot come to market with drastic increases in value. A balanced market will not have the highs and lows, meaning no bidding wars which would drive up and stimulate a seller's market. Overvalued homes will simply sit on the market until their prices drop and become more competitive. Buyers will be willing to wait out sellers or simply move over to realistically priced homes offering a better investment.
With interest rates remaining stable this might be a great year for the first time home buyers to stop renting and get out there looking for their first Real Estate Investment! The economic future of Nova Scotia looks rosy indeed in 2012 ......with the start of the Ship Building contract, investing in our land will definitely pay off !!
Should you wish to discuss this article or any of your Real Estate needs please call, I am here to help!
Bonnie MacLean.... 444-1144.... email@example.com
Posted by Bonnie MacLean
on January 5, 2012