The good news is that the recession ended several months ago. The bad news is that unemployment numbers are at record highs, housing prices have continued to rise in many places in Canada, and emplyment income is depreciating.
Condsiderly, all the negatives in the market, prices continue to be bid up in some markets. In the micro leave, this will be good in the short run, but it will have negative impacts in the long run.
Before the US collapse, the average mortgage was 125% the average annual household income before the housing collapse. In Canada, the percentage of household income is aproximately 137%.
Not to mention, we have shorter mortgage terms, commonly used variable rate mortgages, and high exposure to volatility. All these elements seem to be working against Canadians.
These facts can be argued for or against and there is no clear cut law on new scenarios. What do you think? How will the market play out over the next few years?
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