Barry McKenna wrote an interesting article in the Globe & Mail yesterday. The crux of the article was that are banking regulations only partially saved us from the effects of the Lehman collapse and subsequent world credit crisis.
Canada is living in a world of artificially low interest rates as a result of the crisis. Bank of Canada Governor Mark Carney has warned of Canada's household debt being far too high and growing. When interest rates increase (and they will) there will be a deflation of home values as households struggle with their debt load. Although analysts expect a correction ... it is still impending, not yet here. As long as U.S. interest rates stay low, Canada will too.
If you are contemplating selling your house, price it right. If you are planning on buying a home, I recommend that you get a good mortgage broker (I can recommend several) and negotiate hard for a good long-term rate.
If you would like to read the article n full, here's the Globe & Mail story from September 10, 2012.Mike Alleyne, Real Estate AgentHomeLife Benchmark604-785-7066