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Briefing

Canada: Real-Estate Sector

Appears in: North America, Finance and Banking, Macroeconomy, Canada, Commercial, Real Estate, Real Estate and Mortgage Finance, Residential

Critical Issues

Background:

Declines in trade, particularly with the United States, dampened Canada's net income and took a toll on the country's housing market in early 2009, but the market quickly rebounded, supported by low interest rates and stronge lending. Canadian housing starts, which sharply decreased in H1 2009, stabilized quickly and housing quickly regained pre-crisis prices. Analysts have also noted that Canada's housing supply overhang, prompted by overbuilding, remains lower than oversupply levels seen in the 1990s.

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