Poor global economic conditions are having an adverse affect on the health of Canada's housing sector but compared to other countries, real estate in Canada is for the most part positive, according to a recent report from Scotia Economics.
"In the majority of the major markets we track in North America, Europe and Australasia, inflation-adjusted home prices declined on a year-over-year basis in the second quarter of 2011," said Adrienne Warren, senior economist and real estate specialist for Scotia. "While Canada's hot housing market also has begun to cool, it remains a notable outperformer."
According to the report, in contrast to other nations, Canada's housing market has fared well despite poor global economic conditions. On average, existing home prices, adjusted for inflation, were up 5 per cent year-over-year between April and June, which is roughly equivalent to data from the previous quarter. What's more, of the nine major markets tracked by Scotia Economics, Canada was one of three that saw positive price growth, the others being France and Switzerland.
While home prices may be higher, historically low mortgage interest rates will keep Canadian homes affordable for many, Warren noted.