The bank isn’t predicting when a housing correction will happen but says prices will soon drop
TD says Vancouver’s market is ‘ripe’ for a correction
VANCOUVER (NEWS 1130) – When will the madness surrounding sky-high local real estate prices come to an end? If you look at the prediction from one of Canada’s big banks, it looks like the tide could turn sooner than later and it couldn’t come soon enough for anyone trying to get into the market.
But there is some bad news if you’re thinking about cashing in and cashing out to capitalize on the market.
A new report from TD says, “There is little debate Canada’s hottest markets like Vancouver are ripe for a correction; the difficulty is predicting its timing.” Meaning, it’s not going so far to say the bubble is going to burst, at least not anytime right away.
Instead, prices are expected to start moderating later this year as more supply enters the market. “Over the second half of 2016, some moderation in resale activity and price growth should become evident as bond yields pull off their lows and stretched affordability leads to a cooling in domestic and foreign housing demand.”
“However, barring significant new government regulatory measures to curb housing market speculation later this more, more concrete signs of a housing market slowdown are unlikely to be seen until 2017.”
The report finds housing prices in BC are expected to go down between two to four per cent sometime in 2017.