2007 proved to be a startlingly good year for the Canadian housing market. Month after month, the prices of homes in many areas of Canada experienced consistent growth spurts. During the first 6 months of 2007, sales activity reached unprecedented levels. Though the rise in house prices in Canada has slowed slightly in 2008, many potential buyers are asking themselves "Is now the right time to ?" Below, we'll take a brief look at what the current state of the Canadian real estate market means to you.

Market Forces In The U.S. And Canada

The real estate market in Canada is experiencing an interesting dynamic. The U.S. (Canada's largest trading partner) is currently going through a housing slump as rising unemployment, low consumer confidence and a portfolio of sub-prime mortgages that has been slowly imploding threatens to shake the nation into a recession. While the economies (and by extension, the housing markets) in both countries are connected, some experts suggest the problems in the U.S. could boost the housing market in Canada.

Gregory Klump, the chief economist of the Canadian Real Estate Association, has suggested that a recession in the U.S. could prompt the central bank in Canada to lower interest rates. These lower interest rates, combined with the strong dollar and record employment rates, could make buying a home more affordable.

What The Current Market Conditions Mean To You

The growth in the Canadian housing market has started to attract investors from abroad. People from England and the U.S. have begun looking at Canada for real estate investment opportunities. This could propel home prices even higher. The housing market conditions in the U.S., the possibility of lower interest rates in Canada along with increased interest from foreign investors may suggest that there is plenty of growth ahead for Canadian residential real estate.

If you're planning to , now may be the time to act. While the housing market has enjoyed explosive growth during the past year, worldwide and regional economic conditions seem to imply there is plenty of growth potential left.