I keep hearing these rumours about house prices going up again in Canada.  It seems that these low interest rates along with comments that the “recession is over” have boosted confidence with home buyers again.  30, 35 and 40 year mortgages are still being offered to potential buyers up here.

Have we learned nothing from the housing crash in the US?  It seems that the relative strength of Canadian banks, along with an increase of GDP has created a buying environment again.  But both of those facts cannot counteract the spectre of rising unemployment.  When you do not have a job, you cannot afford to make large house payments.  It’s as simple as that.  This article on cbc.ca (actually from September) reports on the rising house costs in certain Canadian markets, but provides some good analysis on why this will not last if mortgage rates start to rise.  Actually, judging by the comments, it does seem if many people do realize the problems ahead.

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