There has been a fair bit of talk and speculation about how the U.S. “credit crunch” may impact Canadians and our real estate markets.
The Canadian Real Estate Association (CREA) has published a brochure titled; “A Credit Crunch Primer” which explains in fairly simple terms what sub-prime lending is and how the practices associated with it have impacted the American lending industry and real estate markets across the country.
The brochure also touches on some of the reasons why CREA believes that Canadians are far less exposed to major fallout.
“Unlike the U.S., the Canadian housing market has not been artificially driven by bad lending practices. Our long-term fundamentals are solid. Canada has a growing population. Our energy and commodities are in high demand, and job creation is strong. Consumer confidence remains high. However, there may be an impact on the overall Canadian economy, which may affect the Canadian housing market. For example, the drop in housing starts in the U.S. will mean lower demand for Canadian softwood lumber products.”
I’ve posted a copy of the brochure here.
A tip of the hat goes to Bill Madder, Executive Vice President of the Association of Saskatchewan REALTORS® who sent me a copy of the brochure. Thanks Bill.
I’m always happy to answer your Saskatoon real estate questions.
All of my contact info is here. Please feel free to call or email.
Norm Fisher Royal LePage Vidorra