30 March 2011
According to CREA (Canadian Real Estate Association), in February the major urban markets showed quite balanced conditions. It’s obvious that during the period from January 17, when the government announced the maximum amortization will be reduced, to March 18, when these changes took effect, the resale market was strongly affected by the new rule’s expectations.
Pinsonneault said that market conditions are balanced in Canada today. But still, the situation differs from one region to another. For example, in Vancouver and Toronto the conditions are not so favourable for buyers as in Calgary. Yes, the house prices depend on income and rents, and a reduction of the maximum amortization period for insured mortgages, “ but we don’t expect any sharp and severe price correction in Canada with today’s growing employment and income levels” – said Pinsonneault.