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saki
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« on: January 24, 2011, 04:02:29 am » |
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Canada House Loan Market going to get tough
Is buying your priority nowadays? Does property an investment to you? Recent statistics show that inflation has caused Canadian properties to increase in their prices including house loans. An 815-square-foot, one-bedroom apartment is on sale for C$879,000, which works out to C$1,078 per square foot, or $12 higher than the average price in Manhattan, according to The Corcoran Report. Prices have been rising since 1980's but the steepest rise is from year 2000 to year 2010.
Talking about a bubble economy, a Canadian citizen will always say that it's different in Canada. Presumably because, Canada has the lowest in mortgage default rate which is a half percent compared to the United States which is 3.73 percent.
Canadian banking system was voted the soundest by the World Economic Forum's most recent Global Competitiveness Report, and even President Obama has praised the country for being "a pretty good manager of the financial system and the economy in ways that they haven't always been."
Canadian government has the ability to manage their financial assets very well. And so, it is not surprising to hear that citizens can always say that the country is different. Hence hearing from somebody in Canada that there is a bubble thingy going on, alarms you. You can now question, what is happening? Is this really true? If it is, then how true?
On one incident, conversations with young adult children took place. They're thinking, naturally, of their future opportunities, but everywhere they look, they see full employment or disappearing jobs. They see average housing prices across the country of over $300,000, with many large urban areas being significantly more expensive, and they know that not only will they need to work, but so too will their partner when they begin their own family life. Although, it has been reported that recession did not just appear much in Canada as it was assumed to have experienced it for only a duration of 8 months but as what we can reflect from the conversation, shows a lot than just believing on what was generally described .
Solely, we cannot really tell the degree of toughness. We can only feel the pressure from the outside. And somehow, tells us that in managing financial assets, takes a lot of endurance, perseverance and stability.
Time can tell until when this recession will affect housing loans but rest assured the government is doing everything to preserve the system that has stood up through the storms. Future remains to be seen in the coming months.
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