Real Estate News – Mid-Summer Update

July 26, 2008

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The real estate market in Western Canada is expected to face some major challenges. Large inventory build-up of resale and new homes and unusual contraction in sales over the past few weeks are causing concerns as how Canada’s housing market will hold up.The drop in housing demand was reported in The National Post “West leads drop as Canadian housing slumps“. The July sales housing sales slump in BC will likely make worst headline early next month.

The economic news are gloomy and Canadian consumers and home owners will need to deal with the new reality of slower growth, higher unemployment, declining home prices, higher interest rates, tighter credit and lower immigration to the major city centers.

“Lost amid concern over United States government agencies moving in to support mortgage lenders Freddie Mac and Fannie Mae plus IndyMac Bankcorp, was a warning that Canada could soon face its own mortgage crisis.”

The National Post reported “Mortgage crisis may be looming for Canada“The tighter under-writing, termination of the 40 years amortization and 0$ down payment financing by CMHC, uncertainty in the stock markets around the world are making Canadian consumers less confident. An earlier news report was saying Canada might in fact be in a recession. If Canada’s economy follows the US, UK, Spain, Australia and now New Zealand, we may not be far from facing a similar fate with our housing and financial market.

Moving forward, the state of Canada’s economy and the challenges faced by consumers were summed up by National Post Columnist, Diane Francis’s ” Debt meltdown summer notes

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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