Good news for home buyers…not so much for sellers.
Scotia Economics says Canadian home prices are likely to decline 10 per cent over the next two to three years, after which they’ll face a period of prolonged softness and lower demand.
And there’s a suggestion that condo prices are likely to moderate , with the record inventory of unsold units likely to force some developers to delay or cancel some planned projects.
I Toronto sales remain 10 per cent above historic averages and the short supply of detached homes in particular continues to drive up prices.
An average detached home in the GTA hit almost $600,000 in July and in the 416 area it was up to nearly $753,000 according to the Toronto Real Estate Board.
Scotiabank’s report says pent-up demand for housing has been effectively exhausted right across Canada by the decade-long housing boom.
But Canada’s housing market is expected to avoid the sharp downturn seen in the United States and Europe because Canadian household balance sheets remain in reasonably good shape.