Canadian Residential Real Estate Future is Solid

The Canadian Real Estate Association is confident that the future of the Canadian residential real estate market is solid. It appears that the largest threat of a 2008 slow-down in the Canadian residential real estate market is from predictions of doom and gloom becoming self-fulfilling if consumers are not informed about certain economic truths, and therefore lose confidence in the market.

There really are no economic reasons for people to lose confidence in the Canadian housing market at this time. Statistics show just how different the housing markets are in Canada versus the United States. According to the January 23rd, 2008 report from CREA "Three key economic ingredients will keep Canada's housing market on a different track from the United States. One is consumer confidence, the second is employment, and third is affordable interest rates." CREA president, Ann Bosley said, "The challenge for the Canadian housing market will be the extent to which employment and consumer confidence may be affected by a slowdown in the U.S. economy."

"Slower job growth, not massive layoffs, are forecast for Canada in 2008," CREA's Chief Economist, Gregory Klump adds. "Consumer confidence may be sideswiped by stock market volatility, and reports that chances of a U.S. economic recession will put the brakes on the Canadian economy. With slower job growth, a low unemployment rate, and the absence of widespread layoffs, consumer confidence will bounce back. The domestic economy and the housing market will weather the sub-prime fallout with the help of lower interest rates."