With rock bottom interest rates and real estate sales on a sharp upswing, is it possible that Canada is in, or headed for, a real estate bubble?
That’s right, the dreaded B-word.
According to a report by analysts at Scotia Capital, “Is Canada in a housing bubble? Probably, but low rates, mortgage innovation and a relative shortage of new supply are likely to keep it going for a while yet”.
Potential buyers are frustrated to show up to house viewings, pre-approved mortgages in hand, to find that they can’t compete with the pile of offers already on the table. It’s not uncommon for properties to sell for thousands of dollars more than the listing price.
Only time will tell if we’re headed for another housing bubble. Until then, it looks like there is no end of people willing to take advantage of the current real estate climate.
