Bank Official Suggests That Homes Are Overvalued in Canada
Last updated on May 11th, 2021 at 01:11 pm
As an experienced Ottawa real estate expert, I believe that knowledge is power. And that’s why I work so hard to keep interested home buyers and sellers abreast of trends that may impact them.
Thus, I wanted to tell you about a recent article I was reading in which an official with the Bank of America recently suggested that home prices may be overvalued.
This is an important development and one that will certainly impact you if you’re considering investing in property in Ottawa.
More About What the Bank of Canada Says About Homes
According to the recent story I was reading, home prices may be overvalued by as much as 30 percent.
Still, experts believe that even with the risk of overvalued homes, the market might see as steep of a decline as our neighbors to the south saw a few years ago.
It is important to be aware of these trends regardless, however, because they can have an impact on both home buying and selling experts.
Sellers could get a nice profit on their home if their values have seen a large increase since they purchased the home.
But on the flip side, buyers could pay a premium for a home that is only going to lose that value in the next several years.
Here’s what else the Bank of Canada’s report recently revealed:
- 12 per cent of Canadian households are “highly indebeted.”
- That rate is nearly double what it was in 2000.
- Those indebted households carry about 40 per cent of the country’s overall consumer debt load.
Still, regardless of these factors, the bank said its current overall assessment of the country’s financial stability is relatively stable since its June review. And, in fact, officials have lowered the probability of an adverse shock across the country.
Here to Help You Navigate the Canadian Housing Market
Don’t navigate the Ottawa housing market as a home buyer or home seller unaided.
If you’re interested in entering the market anytime soon, then contact us, Bobbie & Geoff McGowan, your dedicated Ottawa real estate experts.
We will work diligently to navigate these current market conditions on your behalf, helping to ensure a favorable outcome for you and your family.
Until next time,