Tuesday, August 31, 2010
Canadian Housing Bubble Not Happening
There was a very bad headline article picked up by the media today. A left wing group trying to make a name for it self came out with a 1st graders report on a potential housing bubble if rate rise sharply. That is the entire basis of the article. The facts are that the CD howe institue and CMHC have both not predicted a bubble. The facts are that we have seen mortgage rates go in the opposite direction, they are the best they have been and going even lower. The GDP in Canada has slowed, forecast is for a pause in the prime rate increases. We never had the US style mortgages in Canada. In fact we only had subprime lenders in canada for about 18 months before they were shut down and no longer doing any business in canada. Those mortgage repersent only about 5% of the total mortgage market. Fact RBC was just voted the 10th safeest bank in the world. Canada has a strong, safe banks with the best lending practices in the world. The housing market is balanincg to a healthy buyers market which is good for everyone. Take a breath, read past the headlines for the real truth.