With all the talk about the falling real estate market, Michael Polzler of RE/MAX Ontario says the Canadian real estate markets are far-better positioned than their American counterparts for a good number of reasons.
1. Sub prime 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.
Real estate is cyclical. There will be peaks and valleys. The more restrained the peak, the more modest the valley. While some buyers and sellers will adopt a wait-and-see attitude, there are those that will continue to venture forward.