Back To Normal

The sub-prime mortgage crisis has been on the minds of Canadian home buyers and speculators alike since its culmination last summer. Questions such as “is the mortgage market in Canada going to bust as well?” and “how will our housing market be affected?” have been floating around fairly frequently. Speculation continues as the housing market slows, but all is not lost yet…

According to an article published in the National Post, despite the fact that there was a 14% plunge in construction activity (housing starts) in July, the Canadian housing market isn’t in trouble. Their explanation? The softening of the market is just its return to a normal level after a 6-year boom. Most forecasters are now predicting that prices in most cities will edge down a little and that construction will slow to match the market.

This is good news for those who want to get into the housing market, since homes will become more affordable and more on par with income levels.