11 August 2010
Adrienne Warren says Canadian prices are not expected to have more support in the nearest future.
It’s interesting that in the second quarter existing home prices took a pause, but new home prices continued to rise across Canada.
The main markets raising the prices were in Toronto area (up 0.3%), Ottawa and Montreal.
Adrienne Warren said that over the past decade sellers of resale homes have consistently commanded higher price increases from buyers than have new home builders.
During the period of 2000-2010, new home prices have increased by 50%, and the existing home prices have even doubled.
One of the main reasons for such tendency can be a tight supply of resale homes.
In the end, prices have further to fall in the resale market.
It’s expected that the second half of the year will be much more subdued. Most economists are correcting their forecasts and predicting faster than expected market slowdown.