Want to buy a house in Canada? Act now
by Harleen Kaur - August 19, 2010
Canada, 19th August: If you wish to own a house in Canada, don’t wait. For this is the right time to buy a house in Canada.
Canada housing market is heading towards a crack due to decline in the number of houses being sold in Canada. Even the resale housing market is seeing a fall in princes. And this is largely due to a couple of factors including harmonized sales tax (HST), increasing rates of interest and tough lending rules.
The second half of the current year is also going to see a fall in the selling activity as well as the resale prices in Canada.
The CMHC (Canada Mortgage and Housing Corporation) has an important part in the Canada housing market. The prime motive of the CMHC is to provide insurance to mortgage lenders in case the borrowers fail to make payments on time.
The CMHC has set certain minimum conditions for providing insurance to mortgage lenders in Canada. In the last ten years period, the minimum qualifying conditions were relaxed by the CMHC resulting in increased activity in the Canada housing market causing a considerable increase in prices of residential real estate in Canada.
Although, the CMHC has tightened mortgage lending standards since the year 2008, but, they are still lower than what they were in the past. And this is a positive sign for those intending to buy a home in Canada.
There has been a drop in the sales of houses in Canada in the month of June as compared to May. In June 2010, there has been a fall of 24 percent in the sale of housing units while the drop has been 46 percent as compared to June 2009.
According to the J.D. Power’s fifth annual survey, there is a bonus for buyers wanting to get a home in Canada. There are fewer buyers of real estate in Canada and this is likely to force business builders to sell at lower prices to survive the competition.
Builders in Canada understand quite well that to survive and succeed, they need to become sensitive to the changing needs of the potential consumers and price the houses accordingly.
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