Executive Summary: The Canadian Housing Market
The Canadian Housing Market
ISU Essay
Markets are what drive the global economy skyward; as they create an environment for wants and needs. To define the word market by relating it to economics, simply it means “the demand for a particular commodity or service.” (Oxford Dictionaries, 2010) Now, being able to fulfil ones wants and needs stems from the idea of creating a market equilibrium of supply and demand in a certain economy. More specifically on a micro-economic level, this constantly changing equilibrium can be shown with the Canadian housing market. Canada is a leader in world economic growth, ranking 2nd in the entire world (Encyclopedia Americana, 2010). That being …show more content…
This is one of the reasons why Canada’s economy is so safe. There is strong involvement to allow no Canadian to fall too far behind. The economic decisions made by the government reflect Canada’s long term economic plan, because it is always in the best interest of the people. For starters, there is a high proportion of Canadian mortgages insured by the Canada Mortgage and Housing Corporation (CMHC), to give buyers the assurance their country is supporting them. A great contrast can be seen in the United States, where plenty are suffering huge losses because of poor government policy. This consists of unchecked credit history, and no help with payments. One of the major reasons why Canada will be the first to get through this economic trough or recession is because the government supports Canadians so much more. As well as being insured by the government, they also give assistance in terms of grants and loans to developers or consumers. This program is known as Affordability and Choice Today (ACT), which is sponsored by the federation of Canadian municipalities. This goal was to “promote innovations in housing, planning, design and construction technology.”(The Canadian Encyclopedia, 2010) In effect, this is will boost the quantity of housing to meet demands of consumers and create a new standard of living. More money invested in Canada equals a brighter economic future. This corporation is very significant and invaluable to Canada’s future, with the amount of companies allocating their money not into the production of housing, but elsewhere. The reason being is that the cost to build housing has gotten too high. “In Toronto, builders are not willing or are not able to keep up. The new house completion trend in Toronto is actually on a decline” (Canada Mortgage and Housing Corporation, 2010). So, with the price becoming more
ISU Essay
Markets are what drive the global economy skyward; as they create an environment for wants and needs. To define the word market by relating it to economics, simply it means “the demand for a particular commodity or service.” (Oxford Dictionaries, 2010) Now, being able to fulfil ones wants and needs stems from the idea of creating a market equilibrium of supply and demand in a certain economy. More specifically on a micro-economic level, this constantly changing equilibrium can be shown with the Canadian housing market. Canada is a leader in world economic growth, ranking 2nd in the entire world (Encyclopedia Americana, 2010). That being …show more content…
This is one of the reasons why Canada’s economy is so safe. There is strong involvement to allow no Canadian to fall too far behind. The economic decisions made by the government reflect Canada’s long term economic plan, because it is always in the best interest of the people. For starters, there is a high proportion of Canadian mortgages insured by the Canada Mortgage and Housing Corporation (CMHC), to give buyers the assurance their country is supporting them. A great contrast can be seen in the United States, where plenty are suffering huge losses because of poor government policy. This consists of unchecked credit history, and no help with payments. One of the major reasons why Canada will be the first to get through this economic trough or recession is because the government supports Canadians so much more. As well as being insured by the government, they also give assistance in terms of grants and loans to developers or consumers. This program is known as Affordability and Choice Today (ACT), which is sponsored by the federation of Canadian municipalities. This goal was to “promote innovations in housing, planning, design and construction technology.”(The Canadian Encyclopedia, 2010) In effect, this is will boost the quantity of housing to meet demands of consumers and create a new standard of living. More money invested in Canada equals a brighter economic future. This corporation is very significant and invaluable to Canada’s future, with the amount of companies allocating their money not into the production of housing, but elsewhere. The reason being is that the cost to build housing has gotten too high. “In Toronto, builders are not willing or are not able to keep up. The new house completion trend in Toronto is actually on a decline” (Canada Mortgage and Housing Corporation, 2010). So, with the price becoming more