15 November 2012
It’s just $80, or 0.02% higher than a year ago.
“The first half of the year saw modest price and sales growth, while stricter mortgage rules and change in underwriting guidelines led to a lower market activity later,” – TD Economics senior economist Sonya Gulati noted.
But here comes another important question: what will happen when this temporary cooling stops this spring?
“The answer to it is quite vague.On the one hand, low mortgage ratesmay attract homebuyers back into the market. As a result, we’ll see another cycle of price growth. On the other hand, the lack of demand may keep the market passive until interest rates start rising in late 2013,” – she said.
Based on different opinions from leading Canadian economists, we should see healthy balanced market next spring, however big price increase over the near to mid-term is highly unlikely.