Housing prices for Canada are all over the map for the 2011-2012 year.
Most everyone seems to agree that mortgage rates are currently artificially low and are providing stimulus to a housing market that has ignored the global financial crisis. Pundits are saying again
today that the Canadian housing market is overheated and due for a correction, but they have been saying that for the last three years.
But for a brief dip during the worldwide calamity, housing prices in Canada have roared back.
While it is true that Vancouver and other Western Canadian home prices have soared beyond a reasonable level, the gains seen in the G.T.A. were more moderate.
As a result others are forecasting stable but slow growth because they are assuming rates will not rise too fast to put too large of a damper on housing prices.
It is interesting to note that the naysayers are pointing to increasing interest rates as the downfall of housing, but fail to recognize that interest rates are currently artificially low.
A moderate raise in rates would only bring them back to more historically normal levels, not the source of a major housing decline.
Oil prices, the Loonie and Interest Rates seem to be the public triggers that will influence home prices going forward. With moderate interest rate recovery, a stable Loonie and fairly high oil prices over the foreseeable future, home prices do not look unreasonable in the G.T.A.
Low interest rates are actually a reason to buy before the cost of financing a home becomes more expensive again.