When it comes to making an investment in the real estate market, pay close attention to the local statistics versus the national ones. If, for example, you are looking at investing in a Calgary property, you should focus on the upcoming forecasts for that particular market and basically ignore any doom and gloom predictions for the rest of Canada.
Investors must take a look at the investment vehicle, the kind of holdings and the local geography in order to make a correct call regarding an investment. While some of the housing prices in certain Canadian markets are expecting to see a modest correction, the price of housing remains on the rise in Calgary.
There are certain markets in this country that are very strong while others are extremely weak. Canadian real estate should not be grouped together as a whole but the markets should remain separated when considering investment opportunities.
It's very difficult to assess risk factors when property investments are all lumped together. Each one needs to be looked at based on its own merits. The purchase of a single-family house in Vancouver is going to have a much different prospect than buying a home in Halifax.
If the price of homes becomes corrected in Vancouver, would this have any effect on the housing prices in Halifax? If the Halifax real estate market suddenly crumbles for economic reasons, would that necessarily influence the real estate market in Vancouver?
It's easy to say that Canadian real estate is a good or bad investment at any given time. With this sweeping generalization, however, you may be missing the boat when it comes to lucrative investments that are stabilized by local economic conditions.