Canadian Housing Market Expected to Remain Flat in 2019, Could Grow in 2019
Arslan Butt • 1 min read
According to a recent Reuters poll, Canadian house prices are expected to see no increase in 2019, but the housing market could pick up in 2020 as economic conditions pick up and mortgage rates decline. House prices are expected to remain flat but could see a 1.8% rise in 2020.
House prices in Toronto are expected to climb 2.0% higher this year, while the previous forecast three months ago anticipated prices to rise by 1.3%. However, economists expect house prices in Vancouver to dip lower by 5.5% in 2019. According to their previous estimates three months ago, Vancouver house prices were forecast to decline by 4%.
Positive economic growth and robust labor market conditions are expected to keep demand strong in the housing sector, especially in the main urban regions. On the positive side, nearly 75% of economists polled expect demand for national housing to continue to rise in 2019.
However, with the Bank of Canada widely expected to hold interest rates steady, mortgages could continue at the same pace, without offering much support to consumers. Around 60% of the survey respondents feel that risks were skewed more to the downside for the Canadian housing market.