Statistics Canada reports that home prices fell in Canada by 0.1% which is a good sign, since the decline is very small. The prices in Saskatoon dropped 1.2% followed by Hamilton and Edmonton. The reasons for the drop are not clear. For instance builders in Saskatoon just lowered prices because they were able to save on building materials, while house companies in Hamilton dropped prices just to boost the sales.

The Quebec city, Toronto and Montreal saw a rise in prices.
Prices Fell – Good or a Bad Thing?

The more credit there is on the market, the less value your dollar has, and the less you can buy with it. The fiat monetary system has inflation built into to it, and there is no way to avoid it. The more credit banks give out, which is considered a good thing economically, the less value a dollar has, hence the prices go up, on everything, including building materials for homes (as a result real estate prices go up to). As the banks tightened lending, no credit is pumped into the economy, and in some cases money supply is in fact contracted, by calling in the loans. This causes many people and businesses to go into default, allowing banks to buy up property and companies at pennies on the block. Its on of the biggest scams, yet people call it the “business cycle”. Well if crashing economy and then swallowing real physical assets for fractions of their cost are called a business cycle, then the system plainly sucks.

http://www.mortgagescanada.ca/mortgagenews/mortgage-news/new-home-prices-fall-01-per-cent/16072009

reviewed by Moishe Alexander, CFC canadian funding corp CEO