Recent months have marked a return to significant weakness in the housing market and this, in a number of countries. The news every day evokes the dramatic decline in the U.S. market, the crash of the Spanish market. However, certain geographical areas are spared by this crisis.
Quebec is one of the world where the housing market has not experienced a setback in its growth during the year 2007. This is at least what the president said the Royal Bank of Canada, Mr. Holt, in the latest report published late last week. Clearly, housing affordability remained stable in 2007 and even appears to show signs of improvement for 2008. The market equilibrium is significant in Quebec, and is one of the reasons why housing is not subject to much debate and concern in the francophone province of Quebec.
The industry recognizes that property prices follow an upward trend, rising for an hour faster than wages. However, this increase in prices should stabilize at around 6% for the coming year which suggests that Quebec households will not suffer the brunt of soaring prices and will therefore continue their real estate investment project without too much 'concerns.
Montreal illustrates the trend that is emerging for 2008 in the rest of Quebec. Prices for French-speaking capital of Canada remain fairly constant (5% relative increase in house prices), which provides better conditions of access to housing. Especially as the report published by the Royal Bank of Canada estimates that, unlike their neighbors bordering the Canadians are not overburdened and therefore their ability to repay (credit) is much better, not least thanks to the degradation of the dollar U.S.. As a result, banks have less fear for their proposed methods of financing for their real estate investment. Consequently, the Québec real estate market differs from other areas of the world for its stability and is also faces a crisis of credit, even if otherwise increase prices for residential homes.