According to this article in the Globe and Mail, Canadian home prices are expected to fall by up to 10 per cent through to 2013.
While home prices across Canada have been inching upward for some time now, with average prices in more expensive areas like Toronto and Vancouver bringing up the national average.
“A combination of the recent slowdown in economic activity, the recent implementation of new mortgage lending rules in March, and the high level of household indebtedness has been instrumental in slowing housing activity since the beginning of the year,” TD economist Francis Fong told the Globe and Mail.
“Ultimately, TD Economics expects a peak-to-trough decline in both home sales and prices of roughly 10 per cent from current levels. However, the outlook for interest rates is critical to the timing of this adjustment, TD economics anticipates the Bank of Canada to remain on hold until the first quarter of 2013,” said Fong.
In general, the Canadian housing market is bouncing back better than other countries’ housing markets, including the United States, after the huge economic downturn we saw three years ago.
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