SOURCE: Bennett Property Shop Realty
OTTAWA--(Marketwire - Dec 4, 2012) - The Canadian real estate market has garnered the attention of individuals around the world as speculation regarding its sustainability has been questioned. After avoiding a bubble burst akin to that experienced by the United States in 2008 through an adjustment of lending regulations, Canada is now seeing the prices of its properties fall. While at first glance this may seem to be a negative occurrence, Marnie Bennett agrees with a CBC News article that lower housing costs may actually improve the overall economic environment.
According to the article: "After a multi-year run-up, price gains have slowed down and even started declining in many Canadian cities [...] That slowdown has led to much speculation that a modest price correction -- or worse -- could be in the offing, and gotten economists thinking about the implications of declining home prices in Canada's economy."
While a decline in housing prices may initially seem to negatively impact the economic landscape, Avery Shenfeld, world markets economist at CIBC, believes that it could actually increase spending throughout other economic sectors. As a result, it may create a stronger economy as a whole. The article explains: "Shenfeld's theory is that every dollar spent on housing is a dollar that could otherwise be spent somewhere else. So if a would-be homebuyer is able to knock $10,000 off the purchase price, that's $10,000 that's likely to be spent somewhere else, instead of pledged to a bank to pay back the mortgage."
Marnie Bennett, a noted marketing consultant within the real estate industry, agrees that lower housing prices may pave the way for a stronger economy. She also asserts that a drop in real estate costs may open up the market to potential buyers who, otherwise, would not be able to afford to purchase a property.
"Declining housing prices are most often seen as a negative real estate trend," Bennett explains, "but it is interesting to consider the ways in which cheaper properties might actually improve the economy and the quality of life for buyers who have lower budgets. As Shenfeld explains, lower prices mean more money being spent in other sectors. Lower prices also mean that more buyers can enter the market. As a result, people who may not have been able to afford to purchase a property can realize the dream of home ownership."
Bennett encourages individuals who are considering purchasing a new home to meet with a qualified real estate professional to discuss the options available to them.
A marketing consultant for Bennett Property Shop Realty, Marnie Bennett specializes in marketing and selling new and resale homes, condominiums, and investment real estate properties. Marnie Bennett has a strong background in the real estate industry and is committed to assisting leaders in this field in creating marketing strategies that showcase their properties and speak to buyer values. Marnie Bennett looks forward to continuing to grow in the field while assisting buyers in finding their dream homes.