Economist and author Larry MacDonald of Canadian Business allays fears that the Canadian housing industry will crash in 2014. On the contrary, he forecasts that stability is the order of the day, despite the excessive valuation given housing costs.
Overall, the Canadian housing market is robust. Unsold houses across the national level are sustainable for six months without cracking the market. The sales to listing ratio balances the market at 1:5. The Canadian Mortgage and Housing Report says that the number of residential mortgages that are in arrears remains at a manageable 0.31 per cent.
MacDonald further argues that certain movement will boost the Canadian housing industry. The U.S. Federal Reserve has been buying bonds in such amounts that cannot help but trickle down positively into the Canadian economy. Employment in Canada is up. Banks have further slashed their interest rates, making housing within reach to new owners.
In a nutshell, MacDonald says, “The housing market should again avoid the crash that has been long predicted by a number of observers.”
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