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Canada's housing boom loosing steam

The Conference Board of Canada is warning of "a lengthy slowdown" in Canada's residential construction industry with profits, already off 22 per cent in 2007, falling for the next two years. The longest housing boom in the post-war era is now "out of breath," following spectacular growth in the number of homes built and the prices paid for them, the board said in a report released Thursday. "Satiated pent-up demand and slower economic growth is leading to what is expected will be a long slowdown in the housing market," the report says.

After years of "relentless" house-price increases, declining affordability will be one of the primary factors weighing on the market, board economist Valerie Poulin said in an interview.

March 28, 2008 in Canadian Real Estate Market | Permalink

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Comments

There is no doubt that real estate market is oversaturated. The current forecast calls for real investment in construction to increase by 3.5% in 2007 and 3.1% in 2008. However, starting in 2009, the pace of activity will level off, with investment projected to increase by 1.7% in 2009 before declining by 0.1% in 2010 and 0.9% in 2011.

Posted by: Toronto realtor | Apr 4, 2008 10:09:53 AM

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