Where to find cheap houses: Canada-U.S. gap gets wider

jackalope

Former Staff
Jan 2010
51,139
17,672
Maine
[h=2]Where to find cheap houses: Canada-U.S. gap gets wider[/h]





Canada-U.S. house price gap widens

The gap between Canadian and American house prices - they're well above pre-recession levels in Canada and still depressed in the United States - continues to grow.

(snip ... )

"While it goes without saying that U.S. and Canadian real estate markets have been in different universes recently (while sharing the same hemisphere), the gap just keeps on going," Mr. Porter said.
"The average home price in Canada is now gliding along at $360,000, more than twice the median existing home price in the U.S. (converted into C$ terms) ... Nothing says prices need equalize, but a gap of more than 2:1 is not sustainable. Three ways it can narrow: a) the C$ falls, b) U.S. prices recover, or c) Canadian prices drop. Or, some of the above, or all of the above."

more: Where to find cheap houses: Canada-U.S. gap gets wider - The Globe and Mail


Wow, that's a big divergence. And, looks like a steep climb for median house prices in Canada, with only a small recession dip. Is Canada facing a bubble pop soon?
 

Babba

Former Staff
Jul 2007
78,156
70,068
So. Md.
I'm wondering the same about a bubble pop. I wonder what's causing the rise in values in Canada?
 

Seraphima

Former Staff
Aug 2010
8,278
2,931
I know several people who have taken advantage of this and purchased super cheap properties in the US. As for the rise in Canada... I'm sure it has something to do with growing metropolitan areas and the rising costs of living within them. As my city has grown to be the 10th largest in Canada, (400,000 people) housing prices have risen. More people want to move here because of the tech industry but the housing to meet the needs can't be built fast enough.
 

Babba

Former Staff
Jul 2007
78,156
70,068
So. Md.
I know several people who have taken advantage of this and purchased super cheap properties in the US. As for the rise in Canada... I'm sure it has something to do with growing metropolitan areas and the rising costs of living within them. As my city has grown to be the 10th largest in Canada, (400,000 people) housing prices have risen. More people want to move here because of the tech industry but the housing to meet the needs can't be built fast enough.
I really envy your town. Demand that high can certainly explain the prices.
 

freecell

Former Staff
Jul 2006
6,770
893
Cary
I have a friend in Edmonton that states he thinks it's because of China, Japan ect or buying up places and running up the cost. He said back in the 70's it was easy to buy a house and land at a reasonable price but today most can't afford to buy and now rent. But now this is here-say.