Despite the fact that the country has second-largest landmass and unlike most of the countries Canada is one, which population slightly smaller than any other. Worldwide consultants have been a confused by the real estate market. In past 2010, the Toronto’s real estate market was marked “red hot”. But some of the analytics fear that the real estate market is going out of control due to the fact that sales continue to decrease, but prices have reached maximum point record over the past 30 years total.
According to the Canadian Centre for Policy Alternatives, housing prices are on average higher than the average annual income of Canadians 4,7-11,3 times, while for the normal functioning of the market value of property shall not exceed the annual per capita income by 3-4 times.
Over the past six months, the number of transactions fell by 25 percent, while prices and demand continue to grow. Only from May to June, house increased in price by 1.5 percent. According to experts, the output prices out of control almost inevitable.
Over the past 30 years on Canada’s real estate market was recorded three “bubble” story’s: In 1981 and 1994 in Vancouver and 1989 in Toronto.
Now the cost of housing in all six major Canadian cities on average more than 300 thousand dollars. Sufficiently increasing the percentage of mortgages at 0.25 to the crisis began in the housing market, like a landslide unleashed by the U.S. 2 years ago. For example, in Calgary and Edmonton housing has risen in price so rapidly as in the most affected U.S. cities.
Nevertheless, according to experts, more stringent rules for Canadian mortgages can prevent the collapse or significantly reduce its effects. Even despite the fact that Canada is not immune from the crisis, it will not be as strong as in the U.S., where the bankrupt steel 10 percent of households.