Canadian Housing Market May Be Shielded from US Impact

Posted in Real Insights | January 24, 2008

Did you know that problems in the U.S. real estate market are not expected to have a significant impact in Canada? The Emerging Trends Real Estate Report 2008 suggests the Canadian market will remain solid due to factors and differences that include - a more conservative investment environment; a healthy economy with particular strength in energy and resources; a robust dollar which keeps interest rates in the low-to-moderate zone; high consumer confidence; and a growing population combined with strong employment rates. Unlike the U.S., the Canadian housing market has not been driven by bad lending practices. Only 5% of Canadian mortgages are sub-prime (compared to 21% in the U.S.) and all mortgages in Canada are insured.