Canada’s housing market is a topic of perpetual fascination, due in equal parts to its broad reach, the spectacular manner in which it has soared, and fears that it may yet unfold like a classic two-act play: all happiness and light in the beginning, followed by a descent into darkness and regret.
So far, there has been little evidence of encroaching darkness. Home prices rise within a comfortable range of 1 to 6 per cent a year. Household debt-servicing costs are at a multi-decade low and mortgage arrears are low and declining. Affordability is surprisingly normal as plummeting mortgage rates and rising incomes neutralize soaring home prices. Demand seems well aligned with construction and the resale market remains balanced.
Source: Global Mail