Real Estate Ontario Whats This about a Housing Bubble? - Real-Estate London, Toronto, Montreal, Vancouver, Canada buy house, sell house , rent a house

In his recent testimony, Alan Greenspan warned against the possiblity that we have seen home prices plateau. The bursting of the "bubble" could cause a big hit to the U.S. economy. But, why should we worry?

Well, as we all know, house prices are up across the country...over 10% in the last year, including over 25% in some markets. Additionally, house prices have risen over 70% since 1994, more than double the increase of renting during that time period. Demand for houses is high, as interest rates have stayed low. This has created an investment market for houses.

Now, the average homeowner can use the equity in his/her home to finance the purchase of one or more additional houses. One statistic showed that 13% of houses are currently unoccupied, due to investors gobbling them up, hoping the prices will continue to skyrocket.

But can these prices last? Once the supply of houses exceeds demand, we could see a rapid drop in prices, as people look to sell their extra homes. Higher interest rates or falling prices could scare away potential buyers, creating a housing market crash.

Furthermore, those with Adjustable Rate Mortgages (ARMs) who figured they would only own the house for 3-4 years might now be stuck with either a high interest mortgage, or selling the home for a substantial loss.

Either way, the potential for bankrupt investors seems unnervingly real. With new laws making it harder for one to declare bankruptcy, we could become a nation with huge individual debt...and that would certainly hurt our economy.

Scott publishes and maintains Stock Market Plus, a financial blog with topics ranging from Investing to Debt Control. Visit him at http://www.stockmarketplus.com

London Ontario Real Estate Information

BTB Real Estate Investment Trust announces the acquisition of an office building in Ottawa, Ontario

TORONTO , May 17, 2012 /CNW/ - The Ontario Real Estate Association (OREA) applauds proposed legislation introduced today at Queen's Park that, if passed, would facilitate the use of electronic agreements ...

TORONTO, ONTARIO-- - Calloway Real Estate Investment Trust is pleased to report strong results for the first quarter ended March 31, 2012.Highlights:-- Maintained portfolio occupancy rate at the 99.0% level for the ninth sequential quarter. -- Funds from operations increased by 14.4% to $54.6 million and 5.1% to $0.434 on a per unit basis compared to the same period in 2011 ...

TORONTO, ONTARIO-- - InnVest Real Estate Investment Trust announced today that a distribution of $0.0333 per stapled unit, payable on June 15, 2012, has been declared to the holders of record as at the close of business May 31, 2012. The distribution is $0.0333 per unit of InnVest Real Estate Investment ...

TORONTO, ONTARIO-- - RioCan Real Estate Investment Trust today announced a distribution of 11.5 cents per unit for the month of May. The distribution will be payable on June 7, 2012 to unitholders of record ...

TORONTO, ONTARIO-- - Allied Properties REIT today announced results for its first quarter ended March 31, 2012. The results are summarized below and compared to the same quarter in 2011: Q1 2012 Q1 2011 ...

TORONTO, ONTARIO-- - Allied Properties REIT announced today that the Trustees of the REIT have declared a distribution of $0.11 per unit for the month of May, 2012, representing $1.32 per unit on an annualized basis. The distribution will be payable on June 15, 2012, to unitholders of record as at May ...

TORONTO, ONTARIO-- - Allied Properties REIT announced today that it has entered into an agreement to purchase the following property for $61.75 million: Address Total Office Retail Parking GLA GLA GLA Spaces ---------------------------------------------------------------------------- Lang Tannery ...

TORONTO, ONTARIO-- - Canadian Real Estate Investment Trust announced it has acquired an additional 25% interest in certain components of Dartmouth Crossing Shopping Centre located in Dartmouth, Nova Scotia, ...

TORONTO, ONTARIO-- - Canadian Real Estate Investment Trust today announced its May 2012 monthly distribution in the amount of 12.42 cents per unit . The May distribution will be payable on June 14, 2012 to Unitholders of record May 31, 2012.CREIT is a real estate investment trust focused on accumulating ...

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Whats This about a Housing Bubble?

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