Canadian housing bubble burst prediction refuted
Posted Jun 29, 2011 11:40 am.
This article is more than 5 years old.
A new report from Capital Economics says Canada’s housing bubble is now close to bursting and prices could fall by as much as 25 per cent over the next three years.
The President of the Real Estate Investment Network disagrees and says million dollar transactions in Vancouver and Toronto are skewing the national picture.
Don Campbell tells 660News while activity will likely cool in Canada’s two largest real estate markets, transactions in other regions, like Calgary and Edmonton, are poised to take off over the next five years.
Campbell says another thing that will prevent a real estate meltdown is the fact that most mortgages are backed by Canada and Mortgage and Housing, so people won’t be running away from their homes like they did stateside a couple of years ago.
He says national real estate numbers make great headlines, but you can’t really compare what’s happening in St. John’s, Newfoundland to what’s going on in Montreal or Fort McMurray.
