The growth of housing prices in Canada has accelerated sharply this year, and still no signs of abating. However, experts warn that the further the rate of increase will be constrained by high household debt and growing insolvency. Such results of a survey conducted by Reuters.
According to forecasts of more than 20 economists, the cost of housing will increase by 10 percent in 2016, almost twice the pace expected in may. In addition, the fastest pace in two years, when we started these surveys. Although the increase in housing prices, forecast to have slowed to 3.5 percent in 2017, this will still be the highest since the start of the polls for 2017, which was launched a year ago. The median forecast for 2018 was +3 percent.
In addition, the survey revealed that in 2016 the real estate prices in Vancouver and Toronto – the most “hot” markets in the country – will grow by 15 percent and 22 percent, respectively, versus +9 percent and +16 percent in the previous poll. The highest rating was at +20 percent and +32 percent, respectively.
After the Bank of Canada has cut interest rates twice last year to offset the shock from the collapse in oil prices, the cost of housing has continued to grow. Prices increased almost two times over the last ten years, while the ratio of household debts to their income made up to the end of March, alarm values, and it was 165.3 per cent. However, the majority of survey respondents said that do not expect the Federal government to take additional measures to “cooling” of the housing market.