Over the past year, there has been a lot of speculation about the health of Canada’s real estate market. Soaring prices have led the Bank of Canada and even Wall Street speculators to warn about pricing overvaluation.
You may be able to sleep a bit easier after hearing the perspective of Edward Sonshine, CEO of Riocan, Canada’s largest real estate investment trust. Sonshine is confident that there is little risk of a market correction, or crash.
“Between REITS (real estate investment trusts) and large pension fund players, we probably own 80 percent of the real estate in the country. It’s in very strong hands, and we don’t borrow a lot. When you don’t have weakness because of debt, you’ve got staying power,” said Sonshine.
He is confident that the real estate markets in Toronto and Vancouver will continue to provide returns to homeowners and investors. The reasoning is that more Canadians are moving to urban centers and immigration levels in Canada remain consistent.
Photo Courtesy of Mark Moz