10 reasons why you shouldn't worry about the Canadian real estate market

There's been a lot of talk about real estate in the news in recent months. We've heard about falling existing home sales, price depreciation and of course subprime fallout and foreclosures in the United States. Luckily, we live in Canada! Canadian real estate markets are far better positioned than our American counterparts for several reasons.

1. Subprime mortgages represent less than five per cent of our market nationally.
2. Foreclosures occur in about one quarter of one per cent of mortgage transactions in this country.
   
3. Canadians have more equity in their homes.
   
4. We have less debt than our neighbours south of the border.
   
5. Speculation has played little or no role in existing home sales in Ontario.
   
6. The fundamentals of our economy are relatively solid. Of the G8 countries, only Canada is expected to show growth in 2008 and 2009.
   
7. The Canadian banking system is one of the best in the world, relying more on old-fashioned lending than innovative financial products geared toward profit.
8. The Canadian job market is stronger than the U.S., adding more than 200,000 jobs so far this year.
   
9. Interest rates remain favourable.
   
10. Housing values in Ontario major centres didn't experience serious, double-digit price appreciation year-after-year for an extended period. Our markets were characterized by stable, healthy growth.
    

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