Cana­dian hous­ing mar­ket cool­ing down

The Pak Banker - - Front Page -

TORONTO

While most re­gions in Canada are likely to see stead­ier prices next year, loftier val­u­a­tions in Van­cou­ver and, to a lesser ex­tent, Toronto, will lead to mod­er­ate de­clines, ac­cord­ing to a new report from BMO Eco­nom­ics. Re­cent data show a di­ver­gence in home sales be­tween most re­gions and the prici­est mar­kets, said Sal Gu­atieri, Se­nior Econ­o­mist, BMO Cap­i­tal Mar­kets. Both Van­cou­ver and Toronto - which ac­count for a com­bined one-quar­ter of the na­tional pop­u­la­tion and home sales - are see­ing sharply weaker sales and some soft­en­ing in prices, and are vul­ner­a­ble to a more ma­te­rial correction in the event of an un­ex­pected jump in in­ter­est rates or drop in em­ploy­ment. Mr. Gu­atieri noted that both the Van­cou­ver and Toronto hous­ing mar­kets are hav­ing a bumpier ride than else­where in Canada. Ac­cord­ing to the report, Van­cou­ver’s sales have plunged 27 per cent year-over-year in the three months to Oc­to­ber. With al­most three new prop­erty list­ings for ev­ery one sold, buy­ers are sit­ting in the driver’s seat, low­er­ing prices 3 per cent since the spring.

Mean­while, Toronto’s hous­ing boom is also cool­ing. Re­sale trans­ac­tions de­clined 16 per cent year-over-year in the three months to Oc­to­ber.

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