TD Economics: Regional Housing Report
TORONTO — Housing
in
Canada
can
best
be
characterized
as
a
three
speed
market:
the
booming
(Toronto,
Vancouver
and
surrounding
areas),
the
struggling
(Calgary,
Edmonton,
Saskatoon,
and
Regina),
and
the
stable
(the
rest
of
Canada).
The
dominance
of
the
fastest
growing
markets
boosted
overall
Canadian
resale
activity
last
year
to
its
second
highest
level
on
record
(behind
2007),
while
national
prices
surged
by
8.5%.
The
wide
performance
gap
between
markets
looks
set
to
narrow
somewhat
in
2016.
This
convergence
will
be
partly
driven
by
recent
regulatory
changes
and
an
upward
drift
in
borrowing
rates,
which
will
put
the
brake
on
future
gains
in
the
most
expensive
Toronto
and
Vancouver
markets.
For
the
beleaguered
markets
hit
most
directly
by
low
oil
prices,
including
Calgary,
stabilization
in
housing
prices
is
unlikely
to
take
place
before
2017.
Overall,
national
existing
home
sales
and
new
home
starts
are
likely
to
ease
back
in
line
with
long-run
averages,
while
price
growth
is
expected
to
moderate
to
just
2.6%
in
2016
before
contracting
modestly
in
2017.
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