Cananda real estate starting to cool

Recent rumours of a housing bubble growing in the property market of Canada may be short-lived as February figures indicate a drop in sales.

Worry that prices for real estate in Canada were increasing at too fast a pace had caused many observers to warn of a setback in recovery. The federal government announced new rules concerning eligibility for Canada mortgages in a bid to halt reckless speculators.

The government legislation is due to commence mid April. The first two months of the year historically produce low sales figures due to weather conditions and February saw the Olympic Games take place in Canada which could have contributed to lower sales figures.

Housing supply has continued to grow over the last five months and although down from the supply found at this tme last year is now considered level with February 2008.

The cooling of the market is expected to continue for the next few months and economists predict the months ahead will see less in the way of substantial price gains.