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RBC real estate market predictions
Canadians have watched with amazement for nearly two years now at the collapse of the housing sector in the United States, the United Kingdom and other countries that experienced overvalued housing prices with the sense that markets in this country stand on much more solid ground. After all, the sub-prime business never represented more than a marginal phenomenon here; Canadian households, while carrying heavier debt loads than in the past, were not financially overstretched; Canadian banks emerged islands of stability amid the global financial storm; incomes remained well supported by steady job creation and a strong domestic economy; and the influence of speculation — especially on new construction — was deemed to be subdued.
Then, late in 2007, red-hot Alberta markets began to slide, followed earlier this year by British Columbia’s markets. Most recently, Saskatchewan, last year’s hotspot, and areas in Ontario joined the weakening trend. All of a sudden, Canada no longer appeared immune to a generalized housing downturn. In fact, the souring of economic conditions, eroding consumer confidence and, in some instances, past excesses are creating a downdraft that the majority of Canada’s housing markets will be hard-pressed to resist.
In about two months, market sentiment turned on a dime in the Greater Toronto Area this fall. Until the end of the summer, the feeling was that the GTA was successfully negotiating a landing to a slower, more sustainable pace of activity since home resales had been gracefully trending lower since peaking in the middle of 2007 at never-before-seen levels. However, reports of notable declines in prices and activity in many Toronto communities during September and October suddenly challenged that view. While there is no cause to panic at this stage, the GTA market has undoubtedly entered a phase of consolidation. Earlier tightness has eased and buyers now hold more sway. The area’s economy is facing serious headwinds, which will undermine household confidence. Affordability generally remains an obstacle to would-be buyers, although it has improved modestly in the past few quarters.
December 9, 2008 in Canadian Market Forecast | Permalink
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Comments
great stuff thanks for the info
Posted by: phoenix rv rental | Nov 18, 2009 12:24:52 AM
You folks with no patience make me laugh. Let's look at the last real estate crash in Toronto shall we? Many bought homes for $200K in say '86-'87, those homes peaked to about $500K in '89 - '90, then crashed and settled in around 200 - 300K and stayed there for years. Then this last boom that just passed, saw those same homes rise back up again to $500K levels, mind you the homes are now 20+ years old.I guess what I'm trying to say is, that if you're in a home for the long stretch, who really cares what happens to the value? In the end, I'm sure it will be much more than you bought it for when you're ready to sell. It's these condo investors and short term investors spooking the Toronto market, not the long term home investor.
Posted by: Toronto Lofts | Jan 19, 2009 5:51:21 AM
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Betty
http://www.my-foreclosures.info
Posted by: Betty | Dec 11, 2008 11:33:50 PM
The RBC report states the obvious, but it's a little late to save all the homeowners sitting on depreciating houses bought around the peak of the Canadian housing bubble.
The correction in Canadian real estate will be vicious, and there is no way to stop that. This is actually good news for prudent savers who didn't get caught in the bubble and will be able to buy at much lower prices very soon.
Posted by: Canadian Banks | Dec 11, 2008 12:15:03 PM
RBC Bank President Gordon Nixon - Salary $11.73 Million
$100,000 - MISTAKE (FISHERMEN'S LOAN)
I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.
There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.
Phone or e-mail:
RBC President, Gordon Nixon, Toronto (416)974-6415
RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail to:greg.grice@rbc.com
RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail to:brian.conway@rbc.com
RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail to:tammy.holland@rbc.com
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail to:beja.rodeck@rbc.com
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail to:ombudsman@rbc.com
Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail to:ombudsman@obsi.ca
http://www.corporatebully.ca
http://www.youtube.com/CORPORATEBULLY
"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"
Posted by: Paul Fraser | Dec 9, 2008 11:32:13 PM
