Canada's Condominium Magazine
Participants at a gathering of real estate professionals in Toronto have added their voice to those of prominent regulators, such as finance minister Jim Flaherty and Bank of Canada governor Mark Carney, who believe that consumer debt in Canada is a problem that needs to be dealt with, and that residential property is overvalued.
At the Centract Property Summit 2012, arranged by Centract Settlement Services, an appraisal management company, leaders of the Canadian residential real estate community discussed current industry trends and issues. Among the audience members who participated in a survey, 65 per cent indicated that they believe debt levels are too high in Canada to maintain the current rates of real estate “consumption.”
Even more of the respondents, 70 per cent, believed that Canadian house prices are currently overvalued by up to 15 per cent.
Asked for their opinions on the latest changes to Canada’s mortgage legislation, which will eliminate 30-year amortizations from the mortgage mix for homebuyers, the overwhelming majority, 98 per cent, indicated that they believe the new rules will have a dampening effect on residential real estate markets.
The summit explored residential real estate issues in Canada, with a focus on price corrections, which have been widely seen as inevitable in the near future. According to a release from Centract Settlement Services, the one-day event was attended by over 120 senior executives from financial institutions, mortgages insurers, government, academia, and other real estate businesses.
Centract Settlement Services, a Brookfield Residential Property Services company, is the largest provider of residential real estate valuation and residential real estate business intelligence to the major banks, financial institutions, mortgage brokers and real estate businesses in Canada.