Canada: the balancing act that saved the housing market
Dec 9, 2010
Kiyoko Fujimura Buzzbuzzhome Corp.
December 9, 2010
Pretty much everyone had their knickers in a knot over the summer about the potential housing bubble in Canada. But those people have quietly subsided, with no sign of a crash in sight. And now, TD Bank has released a report explaining why Canada’s so, well, awesome.
In a report from [TD’s] economics department Thursday, the bank said that the Canadian housing market has pulled off a soft landing and likely hit bottom in July. And having pulled off that rarest of feats, the bank now expects “modest price softness for the next year”.
Why the projection of modest gains? It’s not the increase in sales activity that we’ve experienced over the past little while because sales are likely to slow when interest rates rise into 2011. It looks like the supply side is going to slow down, which should offset the inevitable rate increases.
So we dodged a bullet on this one! TD Bank says that if the housing market continued its craziness later in 2010, then we might have been facing the oh-so-feared bubble. Luckily, we stopped buying so many houses. Sweeeeet.