VANCOUVER (NEWS 1130) – A forecast predicts the Vancouver and Toronto housing markets will “shift into neutral” this year and next.The TD Bank says the two cities’ red-hot markets last year has likely left them “more vulnerable to even a gradual increase in interest rates and regulatory rule changes.”
It adds that home resales and new construction might “ease off record levels throughout 2016 and 2017, but still remain above their long-run average.”
The TD Bank says Vancouver “is the most volatile of the 13 markets,” adding that “some payback following banner years” is common.
It’s quick to add that “those waiting for a housing crash in Toronto and Vancouver are likely to be disappointed once again” this year.
The TD says the cities “are likely benefiting from foreign investment inflows,” which could increase due to the low dollar. It also says Ontario and particularly BC have “experienced a sharp uptick” as people move from other provinces in search of work. In turn, the bank says the influx could affect the “already fairly tight rental market over the near term.”
As for the average Vancouver home price, the TD forecasts a 7% increase this year and 2% next year after 2015’s near-19% surge.