Bank report says Saskatchewan to follow Alberta's lead in long-awaited cooling off
Eric Beauchesne, Canwest News ServicePublished: Friday, May 23, 2008
OTTAWA -- Canada's long-running housing boom has ended, with the formerly bubbling markets of Calgary and Edmonton already having gone from hot to not, and with the current hot spots of Saskatoon and Regina to follow, a major Canadian bank says. LINK
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I wonder if there might be some way to use a crown housing holding corporation to smooth out the Canadian real-estate cycles. Western Canadian and Canadian Shield real estate is somewhat correlated with Asian infrastructure demand while the Windsor-Montreal economy is closely integrated with American consumer demand.
What I'm thinking is a voluntary residential real-estate holding vehicle where paying off one's Calgary mortgage also pays off a Toronto mortgage and vice-versa. It wouldn't be perfectly counter-cyclical, but would help to smooth out things somewhat. I guess the holding company would function to buy fractional ownership of residential real estate, federally insured. The goal being to avoid fluctuations in a home-owner's personal finances.
Well, it was kind of expected. It can't be booming in Saskatchewan when Canada is in recession. It's going down everywhere - Vancouver, Maple Ridge, Calgary, Toronto, Saskatchewan. It's like a wave - it hits Saskatchewan last because the boom was there last.
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