Pick up any newspaper today and no one could blame you if you got a little worried about the state of the economy or the fear of a pending maket correction in Canadian real estate.
What if Greece defaults? What about the "fiscal Cliff" in the US? Are Canadians taking on too much debt? Have mortgage rules gone too far? Is there a housing bubble about to burst? What if there is a market correction?
The real question is, do Canadian homeowners or prospective buyers need to be concerned? Every time there is talk about a market correction in Canadian real estate, the tone is quite negatiave. But let's take a closer look at that situation: rather than argue about whether we may have a market correction, let's analyze what it really means to Canadians if there is one.
FIRST TIME HOMEBUYERS:
If you are a first time homebuyer, you have likely felt the pinch of the rising cost of housing, and the new mortgage rules certainly haven't helped any either. So a slight market correction would be welcome news for you. You can still get into homeownership with only five per cent down, but since your maximum amortization is now limited to only 25 years, a drop in pricing is exactly what you'll need to be able to get into this market.
A market correction is a good thing for you.