It looks like those housing market muscles are still rippling.
In a report released late last year, Scotiabank called Canada “a notable outperformer” when compared to nine other developed economies from around the world.
The Global Real Estate Trends report noted that real home prices in Canada were up 4.8 per cent year-over-year in the third quarter of 2011, however, monthly data through November “suggest that prices have leveled off since the spring, with conditions in the majority of local markets in ‘balanced’ territory.”
The report explained that low interest rates are attracting buyers, “but increased economics uncertainty combined with some recent slowing in the pace of hiring could dampen demand in the new year.”
To put the Canadian market in a global context, Scotiabank cited five markets — the US, the UK, Ireland, Spain and Italy — that experienced significant declines from their cycle peaks, while it noted that Canada stood with four other countries — Australia, France, Sweden and Switzerland — all of whom are still experiencing average prices that are at or near record highs.
Here’s a couple of other interesting points found in the report:
- Canada’s ongoing housing boom is in its 13th year
- Canada’s residential real estate boom started several years later than many of its counterparts, with the economy still feeling the effects of the deep recession of the early 1990s and weak labour markets through mid-decade
- Barring another major setback in the US economy, the deep US housing slump of the past five years appears to be near a bottom, however therre is no imminent turnaround on the horizon