Real Estate Investment Canada

Why does everyone think that Canada will follow America into a RECESSION ?? Everything's booming here; no way?

I keep hearing the opinions from others that our real estate prices will crash, our car sales will crash, and that we will face unemployment. Well so far (as of Nov 2008), we have lots of jobs and cannot find enough good people to hire, our housing market is BOOMING with houses on the market for only a few days and multiple bidding wars still going on, and our industrial warehousing space construction just cannot keep up with demand. For proof of this, check out this article that explains the building boom here in Canada: http://www.reportonbusiness.com/servlet/story/RTGAM.20081103.wpropertyreport1104/BNStory/Business/home My view is that our Canadian economy is RED HOT and that homes should continue to appreciate by 30% to 50% per year for another 20 years, so why is everyone forecasting such doom?? It really is getting to be kind of depressing !

Public Comments

1. You might want to recheck recent economic news from your own newspapers and trade groups. The Canadian Conference Board just reduced its 2009 projection of economic growth to 1.5%. Exports to America will be hurt by the downturn in the American economy (moreso if America does go into a full blown recession), commodity prices are off which will further hurt Canada's economic stability, and TD Bank predicts an official recession for Canada by the end of 2008. If you expect housing prices to increase 30 - 50 % annually,Canada will face an even bigger housing crash than the US has faced over the past 18 months. No economy can possibly support that type of real estate appreciation for 5 years (that is a tripling of real estate prices) never mind 20 to 30 years.
2. Can I get some of that stuff you're smoking? No we won't tank like the US cause we didn't fly so high but real estate prices are down in most major urban centres, including the GTA. There aren't bidding wars on most houses, some yes but not most. The Canadian economy is not red hot. The auto sector is hurting because it is so dependent on the US, oil sands are not the gold that they were thought to be. Forecasts of economic growth have been reduced. 30-50% per year for 20 years??? When has that ever happened?
3. We watch as the bad times roll across America. California may be in trouble 2 years before North Carolina. But it is headed to Canada and there is no stopping it..