The latest news from the Knight Frank Global House Price Index is that property prices in Canada have started to fall quite fast, and their findings are backed up by the Canadian Real Estate Association which is currently showing that median values have dropped from CAD 312,024 in October 2007 to CAD 281,133 in October 2008.
If property prices are falling in Canada then this is great news for expats! Because despite the fact that Canada is being impacted by its export exposure to the US and declining commodity prices, upon which the strength of the nation’s economy is largely built, the country remains a top choice with relocating Britons who are attracted to the stunning country, the laidback lifestyle and the opportunities that basically abound in Canada.
And if a relocating Briton with a weak pound can now make their money go that much further in Canada’s housing market, so much the better! If you’re contemplating a move to Canada we will explore how you can get on the housing ladder and why property prices falling in Canada really is great news for expats.
Canada’s economy is built on solid foundations – which is why some people are so surprised that its housing market has indeed been impacted. After all, there is very little sub prime mortgage exposure within Canada’s banking community, and what’s more, whilst prices have risen steadily across the nation in the past decade, they have not surged and boomed like they have in the UK for example. That said, Canada’s economy is not just about its real estate market. Canada’s economy at the moment is being negatively impacted by the fact that 80% of its exports head America’ way, and America is cutting back its spending! Additionally, the natural commodities such as oil and gas which Canada has in abundance and which make Canada so strong and so robust, have fallen in value. Naturally this reduces the amount of revenue that Canada’s government ultimately has to play with. And all of this has undermined the economy which has had a knock on effect in the housing market.
Just like in the US, the UK, Spain and Germany for example, property in Canada is taking far longer to sell with new buyers reluctant to enter the market as prices continue to fall, with investors also waiting to see how things pan out, and others too nervous of their household’s economic position to consider changing mortgages and moving house. This means that vendors are desperate to sell and prices are dropping fast. This is 100% the BEST position for the market to be in for expatriates moving to live in Canada who have sold up in the UK and who are ready to purchase a home. They can enter rental accommodation in Canada, watch the market, and when they spot a bargain they can move in, negotiate hard and get the house of their dreams at a much reduced price to what it would have sold for just 1 year ago when there was great confidence in Canada’s real estate marketplace. You see, every cloud has a silver lining!