10 October 2018
“Both indexes have slowed down significantly this year, but they are showing small monthly increases on a seasonally adjusted basis. It could mean the worst adjustment is already over”, – says Scotiabank VP Derek Holt.
His opinion coincides with the latest forecast from Moody’s Analytics and RPS Real Property Solutions, which expect a slower growth pace for real estate prices during the next 5 years.
“Canada’s housing market still has a lot to do before it returns to the level of affordability it had before 2015, when prices in Toronto and Vancouver started rising sharply. However, the market has already taken the first steps”, – says Moody’s economist Andrew Carbacho-Burgos.
In his opinion, with a more modest pace of prices growth the average household income has more chances to even outpace the prices during the next 5 years. At the same time, a significant price correction (decline) will hardly happen.