Canada’s housing market still outshines rest of world

According to a recent report from Scotiabank, Canada's housing market is continuously outperforming other developed nations, despite cooling market conditions. This article from the Financial Post shares these statistics, and the proposed effects on the mortgage market.

Home prices are reported to be holding steady in many markets, with some, Toronto in particular, showing increases. In the first quarter of 2012, the average national home price fell by 1.6%, compared to the last quarter of 2011 when the inflation-adjusted average showed an increase of 1.3%. The demand for housing is said to have cooled owing to moderate growth of income, stricter mortgage insurance regulations and an increase in homes on the market. It is believed that average prices and home sales will stay at the current level for the remaining months of 2012.

The remaining global markets, notably European countries, are experiencing the weight of the eurozone debt crisis. Home prices in Ireland dropped 18.9%, while Spain experienced a decrease of 9.1%. Most of the countries included in the recent report showed an average price drop. It is believed, however, that increasing affordability coupled with a growing demand will start to balance out these markets.

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Click here to read the full article from the Financial Post.