A new report from PricewaterhouseCoopers PwC projects a positive picture for Canadian home mortgage and housing markets as we move forward into 2011. The report, released by PwC Canada and the Urban Land Institute forecasts “a ‘slowing, steady growth and decent prospects’ for the Canadian real estate market if it can avoid being dragged down by its American counterpart.”
As most analysts note, there are marked institutional differences between U.S. and Canadian home mortgage and housing markets – see this op-ed in the New York Times for an insightful analysis of the continuing U.S. mortgage meltdown – with the key difference being “in the robust condition of the Canadian banks,” according to Chris Potter, leader of PwC Canada’s real estate tax practice.
“In Canada,” Ms. Potter observes, “the real estate industry didn’t get over leveraged and the markets never suffered any interruption of credit availability.” This is largely because “Canadian banks benefit from a combination of institutional risk aversion and relatively stringent government regulation,” she notes.
As a result of such risk aversion and regulatory oversight, “(n)ot only has the Canadian real estate industry been able to weather the downturn in the economy better than other markets, (but) the environment in the U.S. has allowed Canadian investors to be opportunistic,” notes Lori-Anne Beausoleil, nation leader of PwC Canada’s real estate practice.
The general sense is that Canadian home mortgage and real estate markets are robust, with some opportunities for investment, particularly in commercial real estate, with the markets to watch being “the usual 24 cores scattered across the nation from Toronto where there is a ‘softness’ predicted that will creep into the office market in Vancouver where the market remains extremely vibrant.”
Whether searching for a home mortgage, or shopping for an investment property loan, a well-resourced mortgage broker can assist in finding the best terms and mortgage rates for the entire range of Canadian mortgage products.
