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Today: 17.01.2018 - 21:58:31
   Canada Mortgage Hub Discussion Board -> Mortgage Toronto -> US housing sucks, but housing markets everywhere else in the world are rising so fast?
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nmx775

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US housing sucks, but housing markets everywhere else in the world are rising so fast?
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Canadaian living
Post # 1.

rickyhutchinson

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Because everyone wants a new place in excellent condition. No one is interested in anything that needs work. Supply outpaces demand. Buy your own home and get out of that race
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prkush

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CERTAIN housing markets are rebounding or doing well. The reason that Canada in particular is insulated better even after the crash of 2008 is because of CMHC (Canadian Mortgage Housing Corp) which monitors mortgages and their interest rates which heavily dictate to the Big 5 Banks (Royal Bank, TD, etc) how they should regulate. The Federal Government has a huge hand in how our mortgage rates go, unlike the US which had a free-er market which resulted in an awful crash. Also, you'd rarely see 0% down payment mortgages or 35 year mortgages in Canada because it was too risky. Our qualification process for mortgages is also something that is heavily regulated meaning we weren't getting as many unqualified people who still ended up being qualified (which really screwed America up in 2008). Also, in BC in particular, we have the Torrens land registry model taken from the UK. So when you watch HGTV and see people talk about closing costs and their percentages and title insurance bla bla bla, that's something you don't worry about in BC. The land title offices (New West, Victoria, Kamloops) holds ALL the titles to every property in the province of BC. So you see less fraudulent activity of people pretending to be owners and selling properties when they're actually scammers etc. Every title is registered there and transferred there - there is NO OTHER way to register ownership. We don't do deeds like in the US and other parts of Canada. For this reason, we're also a safer province for investment because we know that we're dealing with actual owners which makes lenders more comfortable and it takes away the need for title insurance.Also, Vancouver is special in that we have no more land to grow or use. You have the ocean and mountains and then you go east. Land is so expensive in Metro Vancouver (ending in Burnaby and Richmond) because you'd just have to go east if you want anything, and it's cheaper because it's not the centre or the business core (Vancouver). There's no more land but east, so that's why we have Langley, Coquitlam, Abbotsford and then farther and farther out. In 2003, you could buy a 33x100 home in Vancouver for $300K. That same home (run down piece of junk) is worth around $700K or more (not talking about Vancouver West, just the east side). NOT all of the US has a crappy housing market - it'd be wrong to generalize. LA, Seattle, and NYC are recovering quite nicely. Obviously they're still in a slump and not anywhere near their value pre-crash in 2008, but they're slowly climbing back up. Also, the housing market in Metro Vancouver was HOT this year from February-April/June and has slowed down significantly to what is now the beginning of a nice buyer's market. Every market swings back and forth...Vancouver is just less temperamental :)
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Canadian housing and mortgage corporation
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