A report by the Canada Mortgage and Housing Corporation (CMHC) could be a sign that mortgage rates are about to be slashed and housing prices in Canada could be in for a steep drop. This has gotten the International community abuzz about a fresh wave of people potentially moving to Canada.
The report predicts a slowdown of new homes being built as well a decline in the prices of houses already on the market. It also predicts that the slowdown will continue well into next year.
While the initial views of this report will likely bring the gut reaction of potential immigrants to say “I am not going there” it is the times like these that often separate the “out of the box” thinker from the more conventional thinkers. Remember that real estate, especially in modern western countries, often works in cycles. Prices go down when the perception, real or imagined, is that the area has become undesirable. This, in turn, brings the most innovative type thinkers to see an opportunity. It is these times when real estate and housing can be bought for relatively cheap prices, built back up and then resold for hefty profits as the area begins to turn around. Just ask the many happy home owners in places such as Harlem in New York City where a number of years ago you couldn’t give property away as not very many people had a desire to live in the crime infested neighborhood. A decade and a half or so later, the smart people who didn’t buy into the negative hype and purchased property in the community watched as the value of New York City real estate began to explode, and were able to turn themselves some very nice profits from the areas bought in the one time woe begotten area.
The same could be on the horizon for potential Canadian home owners and now is the time to make the decision on how you want to look back on this “tough” time in the Canadian real estate market. Do you want to be like everyone else and cower away from Canada knowing that it is not a popular place to be right now? Or do you want take a stand, show faith in the generally thriving country and position yourself to make a princely sum down the road? These will be decisions that potential homeowners will be wrestling with as the Canadian housing and real estate situation plays itself out.
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