However, in times of rapid growth, many potential home buyers remain tentative about making the decision to purchase. They have questions about the future of the market. Will homes continue to rise in value? Is the housing market in Canada stable or will it come crashing down similar to residential property market in the United States? These are a few of the questions that are on the minds of many would-be homeowners. Below, we'll take a look at current housing market conditions in Canada and how they may impact your decision to buy a home.

Current Housing Market Conditions In Canada

While the prices of residential properties have jumped over the past year, many experts remain optimistic about the future of the Canadian real estate market. The central bank has shown a keen understanding of the economic fundamentals that drive the housing market. In fact, they have considered raising interest rates in order to slow the market's stunning growth. Doing so would likely prolong the housing market's strength.

Other factors that are currently supporting home values throughout Canada include the high employment rate in most major cities, a strong dollar and a limited sub-prime mortgage portfolio. These circumstances have combined to create a housing market that continues to show strength and stability.

Having Confidence In

Though nothing is certain, many real estate experts consider Canada's market to show a level of durability that is lacking in other major housing markets. As the U.S. market has stumbled due to its large sub-prime portfolio and rising unemployment rates, real estate markets in other countries have also struggled. If you have been thinking about buying a home in Canada, this may be a great time to purchase while avoiding the volatility in other parts of the world.