Not likely. The record sales reached in 2007 were largely due to the shock caused by the introduction of 40-year mortgages in Canada. Now that most of the home buyers who were sitting on the sidelines bought houses, sales volumes are expected to return to more sustainable levels.
Another big issue is the slowing down of the Canadian economy, with experts now predicting that Canada will follow the US into a marked contraction. Ironically, one of the biggest dampeners on the Canadian housing market may not be the troubled US housing market per se, but related woes in the financial markets. The ensuing "credit crunch" has restricted credit globally, led to higher fixed interest rates and decreased affordability for all consumers.
