April 28, 2014
When the Bank of Montreal chief economist Doug Porter just announced the difference between the US and Canadian housing markets has never been greater, my reaction was to hit the pause button and ponder just what is going on? Huffington Post's article Canada-US House Price Gap Hits a Record High:BMO highlights the salient indicators - While the US housing market has rebounded from the long recession, it has not caught up with the steady price gains afforded by the stable Canadian marketplace. Nor is the US market appreciating at the same extraordinary rate as the Canadian housing market whose average resale house prices are now 66% higher than US resale prices. More and more analysts are sounding warnings about Canada's inevitable market correction - saying that the shift is near. CMHC has just eradicated the provision of mortgage insurance for second home owners and made the loan application process for self-employed borrowers more stringent - a timely move by the damage control department?
If you are a Canadian thinking about investing in US real estate, now may be the best time to take action, while lending rates are still reasonable and the US housing market is on the rise. If and when there is a correction in the Canadian housing market, money invested in the US will be good insurance, especially when those investments are placed in urban areas like Seattle where there is strong job growth in the information industry; professional and technical services. Seattle's economic surge has directly affected the housing market where a 15.2% annual increase in median house price occured from September 2012 to September 2013. Call it dollar cost averaging and be sure to give me a call. I can help you check out the premium property investment opportunities and financing options to match your budget and your goals both in Vancouver, BC and Washington State. Leigh Freeman at www.vancouverhomesite.com