Canadians are using more debt than they ever had been to get into the property market. As some investors and economic analysts look closer at the Canadian property market, many are seeing signs of faltering quite similar to that of what has happened in the United States.
The good news is that the Canadian property market is currently showing no signs of dropping, and in many areas the country is seeing 9% and 11% annual growth each year.
Yet the cost of Canadian property is as high as it has been since 1990, according to the Canadian Royal Bank. Should these high values come falling down, home owners here will see all of the valuable equity they have, gone.
As reported by the Canadian Press, Roger Sauve who is a consultant for the Vanier Institute of the Family said, "Definitely the fundamentals are not great. There are a lot of families who are stretched."
He later added, "Just like in the US everybody is feeling good right now. They are taking on debt, but they are not worried because the prices of their homes are going up. But it would be easy to see house prices going down five or ten per cent."
