Toronto, Ontario (PRWEB) March 13, 2013
A number of major papers, including Calgary Herald and Financial Post shared reports published by Fitch Ratings. The US-based agency reported that Canada’s market is still overvalued at 20%. According to Mr. Arkan, CTO of Syndicate Mortgages, the findings might seem alarming but there are plenty of positive signals that indicate that Canada’s market is still far from a US-styled crash.
Substantiating his statement with fourth quarter results shared by RBC, Mr. Arkan said affordability is largely improving in many parts of the country. He further added that lower mortgage rates offered by a majority of leading lenders are also the key reason behind homes being affordable and accessible to a majority of buyers.
On the other hand, Fitch Agency’s report states that Canada home prices won’t be able to revert back to sustainable values for several years, even if the market growth comes to a halt. According to the ratings, Ontario is currently overvalued at 21 percent, British Columbia and Quebec are overvalued by 26 percent and Alberta is currently the least overvalued at 15 percent. “Alberta home prices have remained low since 2007. The global oil crises led to serious unemployment issues in the region. Excess of inventory and lack of affordability are two factors that have kept the prices in control,” Mr. Arkan explained.
Meanwhile, WSJ reports that home prices in Vancouver, one of the major markets, have also dropped 3.3% from a year earlier. On the other hand, resale housing prices in Calgary hit a record high last month. The average price topped at $ 518,452 after a 7.46 percent hike in year-over-year price.
According to Mr. Arkan, the Canadian market is still far from a US-style meltdown as predicted last year. Sharing some historical facts, Mr. Arkan stated that Canada’s market has remained overvalued for a much longer time. “In 2011, the Economist reported that Canada’s market was more overvalued than the US market was before the crash. However, there are plenty of underlying factors that still make our market resilient and immune.”
As the market is now about to enter its spring buying season, Mr. Arkan predicts that the pace of price increase will remain lower. Syndicate Mortgages facilitates search for the best and lowest mortgage rates across Canada. Learn more at http://www.Syndicatemortgages.com
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062