TORONTO (Reuters) - the first time in three years, the fiery signs of cooling housing market in Toronto show, David Fleming and other Canadian real estate agents worry about the prosperity of the market out of control brought a breath.
Fleming said, "This is a balanced market, and now, where you did not make the decision to your head gun. He said the bidding war for the past few years has evolved into a simple small-scale conflicts between prospective buyers.
But it may be too fast, clear sound, some experts have warned. Now it is a mild retreat still seems likely to become a fierce defeat.
To tighten the government authorized the entry into force of the mortgage rules, the beginning of a turning point last week, enough to want to become a buyers market, causing prices plummeted, especially in the low-end.
At least for now, most economists and real estate agents believe that a soft landing policy makers are trying to engineer has begun to take shape. Economic slowdown, the booming of the Canadian housing prices and apartment building a strong, three-year climb.
"The housing market has been a marked slowdown, we know that looking for the numbers, sales activities, and even the price of CIBC World Markets senior economist Benjamin Tal said.
Under the recent changes it is in the market has slowed down the gentle push you always run the risk of things have slowed down, you might make it fall, Tal said. "
Bearing in mind that the U.S. housing is still plagued by the booms and busts of its southern neighbors, Canadians have been surging prices collective teeth of the teeth, they are worried about the amendment, is just around the corner.
Canada does not have significant subprime mortgage market, have not experienced the collapse of the housing market to promote the United States and other Western countries into recession. Canadian market in 2008 to retreat back to the low interest rates continue to promote a rapid rebound.
Throughout the country but with signs of slowing down, experts are debating whether the recent tightening of mortgage rules just enough - a good thing - or too much.
April sales of existing homes in Canada slowed to 3.1 percent in May, the price decline the previous year, the average price in the past year only in the second drop-down data from the Canadian Real Estate Association show last month.
The figures released this week show that the average price of a detached bungalow rose by 5.5 percent in the second quarter from a year earlier, while the average apartment price increase over last year, 3.3 percentage points. Although still far from recession, rising prices decreased by 7.5% and 3.5% respectively in 2011.
Tal said he thinks prices could fall 10-15% in the next 12-24 months, the cooling, but in time of market interest rates are expected to raise interest rates in 2013 or 2014.
"I think this is the most likely scenario and the best possible solution to any softening, he said:" before the final rise in interest rates is a bonus.
Royal LePage Real Estate Group, the preparation of quarterly price data, the market is a turning point in the move of the government restrictions on borrowing is a mistake.
CEO Phil Soper, said: "the cumulative impact of these new regulations, creating a significantly higher barrier to seeking their first-time buyers to young buyers, the market itself slowed down the timing of this intervention Unfortunately, and CEO of Royal LePage's.
Finance Minister Jim Flaherty introduced the new rules, homebuyers and homeowners to bear the huge debt, the government's fourth attempt in four years in the housing boom brake harder to. These changes take effect July 9
Canada's policy makers need to do more stringent mortgage rules, interest rates can not, the central bank is unable or unwilling to face the global economic issues, to raise borrowing costs.
Reduction in government-insured mortgage loans mortgage rule changes the maximum length from 30 to 25 years old - than the standard 30-year mortgages in the United States short - and reduce the maximum amount Canadians can borrow to 80 percent, from myself home 85%, among other measures.
Tal said, the shorter the length of the mortgage is equivalent to 1% for first-time buyers borrowing costs. This will effectively reduce the number of buyers, especially at the low end of the market, these people can not put enough money in order to avoid mortgage insurance budget.
Director of the Credit Suisse in New York, economics, Jonathan Basile, said he believes that more stringent lending rules, the correct approach, because the market unsustainable pace.
"The tightening mortgage rules do not like to turn off the tap - you just cut off some mobile," he said.
Basile is expected at the end of this year through the housing correction, cooling, is likely to be ordered, but not without a terrible swing some of the risks.
"Does not occur in a straight line, they can be a bit risky. Therefore, it does not mean that it will be a bumpy smooth transition," he said.
Toronto home buyers should be what, in addition to the 2008 bull market, has 19 years of breathing space to thank the rise in prices, real estate brokers, Fleming said.
"Buyers should also be taken and run it. They have an opportunity to be able to choose and no tender of seven other people," Fleming said. "This is not a complete buyer's market, but it is the closest we have seen in a very long time."



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