According to a leading economist and property strategist, the state of the Canadian housing market differs significantly from that in the UK and the US, and as a result it’s apparently fair to say that the Canadian property market is dropping but not crashing.

This is good news for would-be expatriates thinking of emigrating to live in Canada, and also excellent news for would-be investors who are aware that in certain Canadian cities the vacancy rate is almost impossibly low – meaning that Canada is a top choice for investors.

As prices rose over the last decade however, fewer investors and speculative buyers were entering the market because they were aware that higher prices would reduce the overall rental yield achievable.  But now if the expert from Scotiabank is right, it could just be the best time ever to look more closely at purchasing Canadian real estate assets.

Adrienne Warren, economist and real estate market specialist at Scotiabank was recently reported as saying that the adjustments that Canada’s market is seeing have more to do with a cyclical adjustment than anything else.  Warren, as reported in the Financial Post, goes on to explain that Canada’s boom was built on real and tangible fundamentals rather than immature lending practices.

In other words, Canada’s boom was built on an increased affluence present across society which was fuelled by the nation’s own improved economy.  The nation’s improved economy was caused as a result of the strength of oil and gas prices – both natural resources that Canada has and exports in abundance.  As oil and gas prices have now fallen and overall export revenue has dropped as Canada’s number one trading partner has reduced the amount it spends, (i.e., America), so the whole of Canada is suffering a little.  This has had a natural knock on effect on the housing market.

What’s still supporting the housing market is the fact that the Canadian banks did not enter into the sub prime sector to the same level that banks in the UK and US did.  Additionally, there is still strong employment in Canada and this is ensuring that the overall economy remains robust enough.  So whilst there is less appetite to buy and move – those who do want to buy and move can as banks are still lending.  Meanwhile, the rental sector remains as robust as ever, and as underlying prices fall, so the rental yield achievable strengthens in direct relation!

If you’re looking for a market where you can perhaps enjoy the relative fall in prices despite the weakened pound, take a look at what Canada has to offer.