May 5, 2010
Canadian housing prices are likely to decline in 2011 according to TD. Their earlier projection that prices would increase by 1.6%, adjusted for inflation, has been revised to a 2.7% decrease.
Ontario and British Columbia are expected to bear the brunt of the decline, seeing their markets drop by 3.4 per cent and 3 per cent respectively. The Globe and Mail
TD is surprised at how developers and sellers jumped wholeheartedly into the market. New housing start and new listing numbers took TD by surprise. CREA also projects a decline in housing prices. But their projection of a 1.5 per cent is slightly more optimistic. But the CEO at Brookfield Real Estate Services, Phil Soper, announced at the recent AGM that their forecast is likely a bit outdated and prices will decline more than the projected 1.5 per cent.
So, much to the chagrin of developers I’m sure, it seems like everyone jumped into the market too quickly. What’s funny is that the price increase projections were probably a lot of the reason that developers decided to build and now that they decided to build it looks like prices are going to decline. Heh, funny how stuff like that works…eh?