If you're one of the many that has felt threatened by the global economy, sit back relax and enjoy a cup of tea. Mississauga real estate is not headed for a crash and it is perfectly safe to invest your money in real estate right now. We are not heading for any type of real estate fall either now or in the upcoming future according to a new report issued by CIBC.
There are too many differences between the real estate fall that happened in the United States and the market in Canada to really compare the two. They are like apples and oranges and this Canadian real estate market is not headed for a meltdown. If you're concerned about the housing market in this nation, you need to understand that the differences that separate Canada and the US market are great in scope.
One of the biggest problems that occurred in the United States happened with mortgages. There were too many risky mortgages being offered to approximately 22% of the market overall. Mortgages were handed out haphazardly with profit goals in mind instead of long-term sustainability.
In Canada, we have been more than conservative with mortgage lending in the past and recently, with the new the housing mortgage terms being put into place, it's getting even more difficult to get approval for mortgage. While this may affect some people on a short-term basis and make them wait an extra year or two to afford a mortgage, it's a long-term game plan that keeps buyers and the Canadian real estate market protected.
In the United States there was a lock of speculative activity going on in the market, which has not been seen in Canada to a large extent. Housing starts below the border were exceeding household formation by an average of approximately 80% during the last 10 years. There has only been a gap of 10% in Canada.
The prices for homes in the larger Canadian cities like Toronto and Vancouver are likely to fall somewhat within the next two years but these are going to be slow and minimal price adjustments and will be completely different than the US meltdown that has been seen during the last few years. Canadians can invest confidently in real estate now just as they have been able to for years.