You would have to be living a pretty sheltered life to not know that North America is going through a real estate crisis and has been for the past three years. This all started with the mortgage crisis that caused millions of foreclosures throughout the United States and Canada, and we are still seeing its effects with everything from California properties to employment levels. But if you don't know a lot about the real estate market, it can be difficult to decipher what it all means and how it can affect your mortgage or potential to own your own home. Here is a little more about what is going on in Canada and what you can take from the news stories on the topic.
First of all, you should know that the real estate crisis affected Canada much less than it did our southern neighbours. While at its height some homes in Toronto or Montreal were selling for as low as sixty percent of their market value, homes in states like California and Arizona were selling for as low as forty percent or less, and continue to show these sorts of numbers. In some cities there are as many foreclosures available on the market as there our regular resale homes and new developments. If you're looking at homes for sale in Toronto or Vancouver you will not see numbers like this.
The real estate crisis affects two types of people in very different ways. The first is people who took advantage of mortgage plans years ago where you hardly had to put any money down on your property but were then locked in to higher mortgage rates. Many of these homeowners found years down the line that they could not keep up with their payments. This started the long list of foreclosures and affected the economy so much that a financial crisis that started in the real estate industry spread to many others sectors. This means that homeowners who were already having trouble making their payments were now also losing their jobs in a rising recession. When you're talking with your mortgage broker you always want to make sure that you will still be able to afford your home years down the line.
The other people that are very affected by the real estate crisis are new home buyers. This is one of the largest buyer's markets since the Depression years and many people who are currently in a secure financial state are taking advantage by consulting their nearest Realtor. This is a great time to buy a home, as mortgage rates are down and there are hundreds of deals to be found in most Canadian cities. But, the real estate market is bouncing back in Canada much faster than it is in America. So, if you're considering buying a home, now is the time to do it.
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