Home price rises to slow down sharply: RBC

  9/18/2017 |   SHARE
Posted in Real Estate Market by Vanguard Realty | Back to Main Blog Page

A housing market outlook from RBC Economics is calling for a decline in resales for 2017 and 2018 and a deceleration of price rises.

The report from senior economist Robert Hogue forecasts a 3.7% decline in home resales for 2017 to 515,500; with a further 5.3% decline in 2018.

The price benchmark is projected to show an annual increase of 9.8% for 2017, up from the 7.8% advance RBC forecast in June; and then a sharp slowdown in price increases to just 1.2% in 2018.

Meanwhile, TD’s senior economist Michael Dolega says that further interest rate rises are expected to “begin to more forcefully impinge on Canadian housing activity, which may be further affected by new B-20 rules from OSFI.”

He adds that strong growth for jobs and wages should support continued fundamental demand for housing.

Canada Real Estate, Canadian Housing Market, Housing Correction Canada