Fears of a housing correction in Canada’s two hottest markets are unlikely to be realized according to one mortgage lender’s experts. Robert Kavcic of Bank of Montreal says that he expects homes in Toronto and Vancouver to continue to appreciate during 2016.
A larger number of people will move to the cities from Alberta and Saskatchewan looking for work and opportunities. Economic growth in Ontario and BC with better job prospects, together with continued low mortgage rates, will make a move more attractive. The oil price rout and its knock-on effects will exacerbate price declines in the oil regions though “The real estate correction is already happening – just not where most expected,”
Housing in Calgary will be “weak,” according to the Calgary Real Estate Board which cites continued economic volatility as the reason.
CREB Chief Economist Ann-Marie Lurie said in a release. “Weakness in the energy sector is overshadowing all aspects of our economy and with more people looking for work and fewer opportunities; we could see some families making adjustments to their housing situation. As we move into the second year of this environment, we expect to see additional housing supply pressure and further price declines,”
Sales activity is expected to decline 2.2% to 18,416 units, according to the association. The average price is expected to decline by 3.44% to $438,652.
“Market intelligence really matters in today’s operating environment. Pricing trends have and will continue to vary depending on product type, price range and location,” Calgary's REB president Cliff Stevenson said. “Sellers in this market need to have a good understanding of activity within their specific niche of the market. This is where a real estate professionals can really help navigate market conditions and real estate options, which are always unique to each consumer.”
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