More on the Bubble

Canada’s housing market has been growing constantly the past few years and is finally becoming more sustainable as RBC Economics forecasted.

Economic events around the world, as well as the HST has taken a huge role in this change and it is expected that resales in Canada will increase only by 4.4% and 0.4%, while it will remain unchanged in 2012.

As higher interest rates are implemented, home prices are expected to decline compared to the previous 6 years, allowing first time home buyers to step into the real estate industry. Although provinces such as Quebec and BC are forecasted to decline in home resales, Alberta’s market is predicted to grow in the upcoming years. The prices of homes in the recent years have drove away locals to purchasing homes, luring foreigners to purchase in Canada. This transition makes homes more affordable and is an excellent opportunity for the younger generation to purchase their own property.

Read the full article: 

http://www.bchomesmag.com/news/11-07-27/RBC_Economics_Canadian_Home_Resale_Market_Forecast_Update_Still_Heading_Toward_Moderation.aspx