Canada’s housing market is headed for a soft landing in 2014, but buyers are still likely to feel the squeeze as record-high property prices remain surprisingly resilient, especially in major urban centres such as Toronto, Calgary and Vancouver.
That’s the message from Scotiabank, which released its annual real-estate industry trends report Wednesday at an economic conference in Toronto.
Among its key predictions, senior economist Adrienne Warren said we can already see the slowdown in resale activity, a trend she expects to continue over the next year or two due to a combination of high housing costs, rising mortgage rates and tighter mortgage regulations.
At the same time, housing prices are expected to hold near the 10-year average under pressure from continued population growth, particularly in major urban centres, and relatively healthy labour market conditions.
The only relief buyers can likely expect will be weak to flat house-price gains – a trend affecting the more amply