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Signs of a cooling housing market
Scotia Economics Real Estate Trends Predictions
Short-term cyclical factors are consistent with a gradual cooling off in Canada's housing market over the next several years, according to the latest Real Estate Trends, released today by Scotia Economics. At the same time, long-term fundamentals, including slower population growth, are expected to dampen the demand for housing.
According to the report, the country's average annual rate of population growth is projected to slow to just 0.8 per cent over the coming decade, reflecting an aging society and historically low fertility rates.
"This less favourable demographic trend does not in itself pose a major risk to the housing outlook," said Adrienne Warren, Senior Economist, Scotia Economics. "Real household income growth and the level of interest rates have a statistically more significant influence on housing sales and price appreciation."
Yet the expected moderation in underlying housing demand comes at a time when affordability is at a cycle low, supply conditions are becoming better balanced and pent-up demand has largely been satisfied, potentially reinforcing the industry's more subdued prospects.
"Demographic shifts will also influence the type of housing in demand," added Warren. "In particular, the changing age structure of the Canadian population and the growing significance of immigration will likely favour certain forms of housing and certain geographical areas."
June 4, 2007 in Canadian Market Forecast | Permalink
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Comments
Canada seems to be following suit with the rest of North America to some degree.
Posted by: Louisville Real Estate | Jun 8, 2007 1:53:14 PM
Canada seems to be following suit with the rest of North America to some degree.
Posted by: Louisville Real Estate | Jun 8, 2007 1:53:05 PM
I agree with this. I think it will be 12-18 more months of this type of market.
Posted by: Dwayne West | Jun 5, 2007 5:55:48 PM
Portland Place has also catered for many rich and famous tourists. Emperor Louis III, Sir Arthur Conan Doyle, Mark Twain, Oscar Wilde and Noel Coward, to name but a few, have graced the Langham Hilton with their presence.
www.33portlandplace.com
Posted by: william | Jun 5, 2007 1:59:09 PM
I like to look at individual local markets rather than "Canadian real estate market" Some cities will do better than the others, especially the retirement communities.
Posted by: Abbotsford | Jun 5, 2007 12:37:03 AM
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