Thoughts on C.D. Howe Institute Study

Here is a commentary from TREB  about a study by the C.D. Howe Institute. It points to the misconception that the Canadian Real Estate Market is doomed to follow the U.S. Real Estate market in the next few months.

Here are their thoughts:CD_Howe_Can-US_Housing_Market_Commentary

My own thoughts?

At last count, a quarter of 1% of mortgages in Canada were in default whereas in the U.S. recently over 12% of mortgages were delinquent. Have a look at the charts above.

When interest rates really increase (more than one or two points) and immigration to Canada drops, we will have a serious correction.

Until… expect the market to have seasonal fluctuations and the normal peaks and valleys moving through a seller’s, balanced and a buyer’s market.

If you are waiting to buy and being counselled not to, remember that you must live somewhere and that buying rather than renting allows you to build equity… especially if you can make use of the today’s lower rates to pay down financing or make improvements.

For the full report see:

Your thoughts? Feel free to comment below!

One Reply to “Thoughts on C.D. Howe Institute Study”

  1. I agree totally with you, Richard. The economic fundamentals in Canada remain sound, especially when compared to the U.S. Forecasting doom and gloom sells newspapers, but rarely comes to fruition.

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