http://www.canada.com/montrealgazette/news/editorial/story.html?id=e3d5d913-827b-4b83-9a40-5c3e2a874ec5&p=1

Canadians, strangely, believe this country is immune from the housing contagion sweeping America. The myth results from three powerful forces. Denial tops the list, no doubt the result of having more than 80 per cent of our net worth in one asset, the family home. Add to that the excellent communications job done by the real-estate lobby - mortgage-lending bank economists and the CEOs of real estate marketing companies - who claim home values will rise, forever. Finally, our belief the Americans screwed up by giving subprime mortgages to unworthy people so they could buy unaffordable homes.

So, how exactly do American subprimes differ from Canadian 40-year mortgages? How are mortgage lenders here more prudent when they allow appraisals based on postal codes, rather than actual home inspections? Why should Canadian real-estate values, as inflated now as were those to the south two years ago, hold when our families are no better off? As a global economic slowdown and an American recession take hold, what impenetrable barrier is wrapped around this country?


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http://www.GreaterFool.ca" rel="nofollow">LINK

Quote:

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Originally posted by rahul_singh23

http://www.canada.com/montrealgazette/news/editorial/story.html?id=e3d5d913-827b-4b83-9a40-5c3e2a874ec5&p=1

Canadians, strangely, believe this country is immune from the housing contagion sweeping America. The myth results from three powerful forces. Denial tops the list, no doubt the result of having more than 80 per cent of our net worth in one asset, the family home. Add to that the excellent communications job done by the real-estate lobby - mortgage-lending bank economists and the CEOs of real estate marketing companies - who claim home values will rise, forever. Finally, our belief the Americans screwed up by giving subprime mortgages to unworthy people so they could buy unaffordable homes.

So, how exactly do American subprimes differ from Canadian 40-year mortgages? How are mortgage lenders here more prudent when they allow appraisals based on postal codes, rather than actual home inspections? Why should Canadian real-estate values, as inflated now as were those to the south two years ago, hold when our families are no better off? As a global economic slowdown and an American recession take hold, what impenetrable barrier is wrapped around this country?


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http://www.GreaterFool.ca" rel="nofollow">LINK

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I recently bought the book "Greater Fool: The troubled future of real estate" by Garth Turner. It is a very interesting read!

In a nutshell, the risks currently significantly exceed rewards for residential real estate investment because we are late in this economic cycle, changing demographics, and historically high residential real estate valuations when compared with the median household income.

Weather the U.S. like housing crash would happen in Canada remains to be seen although Garth make a compelling case for it that we are not immune from the U.S woes.

The status quo is clearly not sustainable, and much depends on how it will be resolved. In the meantime, in my opinion, it is best to be on the sidelines at this time.

In this scenario what would be a good idea. Wait and watch if one is planning to buy a house but then for how long?
Apparently some estate agencies are focusing on buying houses.i have got calls lately about some 'Promotional Offers' if I am interested in selling my house! ( Interestingly I am yet to own one!)

Quote:

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Originally posted by rahul_singh23

http://www.canada.com/montrealgazette/news/editorial/story.html?id=e3d5d913-827b-4b83-9a40-5c3e2a874ec5&p=1

Canadians, strangely, believe this country is immune from the housing
http://www.GreaterFool.ca" rel="nofollow">LINK

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

I agree with Amit. It depends on locality. Location, location. I read about that book but I make my own rules. So far my rules have guided me well. Here is my real estate rule.
The location makes or breaks the price. Before too there have beeen gloom & doom pundits warning that a real estate bubble burst is imperative. In W19, W20 or West Mississauga, home are selling at the same rate. It depends how well the home is decorated too. If I am not mistaken I definetly see a thaw in new home sales. As you will note new home builders are willing to throw in more freebies instead of discount. tridationally new home prices have always been below Resale homes prices. The sign of a bubble when the trend is reverse like now. Just follow the new builder and resale home prices, I think it will achieve parity soon. And then it should became normal with new home prices below Resale home prices. In California the prices have slashed by 26%, that is a $400k home has lost qtr of its value to $300 (white house is compensating those poor home owners loss by giving them a time payment of $600, that should help!)
Again generally speaking.
Also Amit I like your web site they are v sincere. One agent to another.

Dear CDs,

Please follow the link below for latest update regarding housing market and taxes.

http://www.thestar.com/News/GTA/article/407487

Ecom