There has been much talk over the last 6 to 12 months regarding the state of the Canadian housing market, and the future fate of housing prices in Toronto and the rest of the country. I’m not sure about you, but most people I know and speak with find it difficult housing prices relative to their incomes to be unaffordable.
Recent studies have examined Canada’s debt-to-income ratio and by now its no surprise that Canadian’s across the country have flunked the test. Old news right?
A recent article in the Globe and Mail does a great job of breaking through the “media clutter” to accurately point out there real estate does have a number of well known and historical relationships that should be watched closely.
When you consider that that mortgage interest rates have already been brought down to historical lows in order to “fix” this problem in the last recession, it seems that housing prices have been pumped up and pushed out to the edge or close to it.
What does this mean to you?
If you’re considering entering the market, make sure that you consider buying below your means rather than stretching to your limits. If you’re already in the market and an existing home owner, now is a great time to consider leveraging your equity with a home equity loan.
