New Home Sales in Canada Surge Forward

While the real estate market in the United States continues to struggle, the housing market in Canada

continues to gain steam. Smashing sales records throughout 2007, the market is poised to surge ahead

as consumer confidence remains high. In fact, the market has been so strong in Canada that the Bank

of Canada had considered slowly raising interest rates to curb the frenetic growth. So, why has Canada

enjoyed such prosperity in the housing market while its brother in the South seems on the verge of

imploding?

What Propels The

Estate>Canadian Real Estate Market?

Experts agree that many factors play an important role in the health of the real estate market. A

comparison of market forces in the United States uncovers some of the reasons behind Canada's

growth. While the U.S. remains mired in an environment of rising unemployment rates, uncertainty

regarding interest rates and a severe lack of consumer confidence, Canada is experiencing the exact

opposite. Currently, the Canadian housing market is

benefiting from a period of record low unemployment, declining interest rates and high consumer

confidence. These factors have helped catapult housing sales (and the prices of new homes).

Canada Avoids The Sub-Prime Problem

There is another market dynamic that has had a severe impact on the real estate market in the United

States. It's a dynamic that Canada has been able to avoid: a glut of sub-prime lending. Sub-prime

lending policies in the U.S. have been largely responsible for the rash of foreclosures and depressed

housing prices. While the U.S. struggles with a nation-wide portfolio of sub-prime mortgages, Canada

has been able to side step the problem.

Taking Advantage Of Canada's Strong Real Estate Market

Buying a new home is one of the biggest decisions you'll make. The last thing you want to do is buy a

house when the real estate market is balanced on the edge of a potential depression. Fortunately, the

housing market in Canada seems secure. A combination of sound fiscal policies and an adherence to

economic fundamentals implies that Canada's real estate market will remain strong into the foreseeable

future.

Article Source: http://articlesmore.com

John is a freelance writer who recently bought a new home in Canada

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