"If money originating from outside of Canada finds housing in Canada too risky, it doesn't seem to be driving a cooling in either of these major urban markets yet," the report reads, adding that media pressure on the housing market calling it one of the world’s most overvalued markets, set to collapse at any moment, is extreme and unfounded.
The report comes at a time when market analysts, agents and others are showing positive signs of optimism to indicate that many markets are growing and not, as indicated, on borderline life support.
While the 0.75 per cent interest rate cut has been beneficial in stabilizing the markets, especially Alberta’s energy sector, confidence has been growing steadily, according to 2015 housing data from the CMHC.
The report also follows comments from George Ross, executive vice-president and senior counsel to the [Donald] Trump organization, who recently said that Canadian market is under-utilized at best.
“Canada is a vibrant economy and some people ought to step in and take advantage of it,” Ross told BNN. “I think it’s under-utilized – not over-utilized.”
“I don’t think the buy-sell or the short sale is the answer. [Real estate investors] are attracted because of the money, but they don’t talk about how long it takes to get the money and they don’t take about the fact you could be in there and not recover what you invested.”
What’s more, Stuart Levings, head of Genworth MI Canada, echoed similar thoughts, citing demand from millennials, successful amendments to mortgage regulations in 2008, and the embellishment of the oil market as reasons to believe the market is in better shape than many believe.
“There is strong demand in this country and there will always be,” Levings told the Financial Post. “Why? Simply because of our immigration policy.
"We bring in first-time buyer pipelines through our immigration policy. They are great future first-time homebuyers that become plankton.”
Talk of overvaluation and the threat of a crash in Canada’s housing market was a notion many agents have been fighting for some time, but it appears the issue is losing steam, according to a new TD study.