15 April 2011
Of course, there are many factors affecting this drop and the problem of aging population is not the only one. Ontario is already showing a slowdown of about 6% in home sales for 2011. The deal is that consumers cancel their purchase plans, because they need more money to pay off their growing debts. Moreover, first-time buyers are strongly deterred by the possibility of an interest rate hike.
According to CMHC’s forecasts, the West and, partially, Northern Ontario will see another home sales increase. In the same time, Southern Ontario will show 6% decline. The Maritimes may see even a 20% drop.
The CMHC economist says Ontario home prices will rise gradually in line with inflation.
But Tsiakopoulos is sure that even the weakest of Canadian markets will rebound by early 2012: “The real estate market is stable now. There’s no reason to worry about the bubble”.