According to economists, the key drivers of prices are looking increasingly weaker and are warning Canadians not to expect any sort of significant growth in house prices for the next few years. The Scotiabank report came a week after TD's economic announced that it expects home prices to grow at 2% per year for the next decade.
The fallout from the tougher lending rules is continuing through February as sales and prices decline on the national scale. After a lacluster second half in 2012, the Canadian Real Estate Association (CREA) adjusted its forcast for 2013. Total sales for the Canadian housing market are projected to fall 2.9% to 441,500 with the national average home price slipping by 0.2 per cent to $362,600.
Although the rate of credit accumulation is slowing, household debt in Canada hits new high in the fourth quarter of 2012, lending more evidence that actions taken by the Bank of Canada are stabilzing the housing market.
Building Industry and Land Development Association (BILD) says government policies in land constraints, regulations and development approval processes are negatively impacting the availability of new homes to real estate consumers. As a result, the price gap between new homes and condos has grown to $196,844, which is more than double the long-term average and limiting choice and affordability for new home consumers.
Well, its official... Toronto's real estate market has shifted into negative territory in its average price. The October market marked the first month to month price decline (0.6%) since late last year. Toronto's real estate market has continued to soften since the new mortgage rules went into