Highlights from the TD Financial Group
•· Speculation by homebuyers drove house prices beyond levels justified by fundamentals and induced an excess of new housing relative to sustainable levels - particularly on Canada's prairies.
•· Affordability eroded severely over the last two years, demonstrating an unsustainable disconnect between house prices and incomes that was due for a correction.
•· Inventories of singles have burgeoned in western markets and unsold multiples are at worrying levels in Québec. The historically elevated construction of condos in Toronto and Vancouver mean that these cities' inventories will spike during 2009 and only alleviate slightly during 2010.
•· The cyclical downturn will depress housing demand during 2009, but recent overbuilding will prevent a quick recovery. In particular, as migration ebbs to the prairies, residential construction will experience a protracted slump.
- However, Canada will not experience a U.S.-style housing crash, owing to less overbuilding and more conservative lending institutions
read the full report here....
If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-506-8481 or email me at jeff@jeffreystark.net
