The CPA (Chartered Professional Accountants of Canada) has officially stated that a housing collapse will not take place as far as Canada is concerned. It has also stated that the market remains steady and will continue to be so in the near future. Lending further credence to previous forecasts made by CREA, CPA has stated that the housing market in Canada is quite different as compared to the market conditions witnessed in 2008-09 in the United States. The CPA has also stated that credit quality is different for the Canadian housing market in spite of hurdles linked to overall household debt levels and affordability of housing units. The real estate market is doing well and is steady in Canada as per the CPA.
The housing collapse seen in the United States was majorly due to huge household debt levels, regulatory misses and a large number of mortgages with higher risks. The situation is not the same in Canada where strict regulations have improved mortgage quality along with higher rates of interest. CMHC has stated that the borrower count with good credit standing has improved to 88% last year from 66% in 2002. Low credit quality customers have come down to 3% from 17% in this period as well.
This augurs well for the housing market and will keep it steady as per CPA. Several borrowers are however looking at alternative and non-regulated lenders for buying property with stricter home buying regulations in place. There is no bubble waiting to burst in the Canada housing market and neither is there any huge deflation worry that investors should bother about. On the contrary, steady price growth though moderate is predicted for 2019 and 2020 alike. Also, supply levels will not be anywhere close to total demand and this will keep the housing market doing well in Canada according to several experts.