Economic forecast and job growth looks positive, but housing market will remain cool
Figures released by the Canadian Real Estate Association on Monday show Canada’s housing market slowed down last month. Sales are down 30 per cent from the same month last year, and prices have slipped 3.5 per cent from June (though prices are still one per cent above year-ago levels). Canada’s largest cities led the annual decline, with Vancouver posting a 45 per cent drop. The slowdown had been expected as prospective homeowners brought forward purchases into the first half of the year ahead of the introduction of the Harmonized Sales Tax in B.C. and Ontario in July. While a boom in the housing market here was spurred by record low interest rates last year, CREA president Georges Pahud said, “Activity may remain at lower levels for some time, but ultimately we expect a more stable market to emerge, with demand coming back into line with economic fundamentals.”