Winnipeg Free Press - PRINT EDITION

Fewer Canadians to buy homes: report

  • Print

TORONTO -- Canada's housing market is expected to continue to soften this year, as fewer people look to buy and home construction begins to slow down, a report released Monday shows.

The report says housing prices are beginning to level out and home-building rates are decreasing, in response to the market getting back into balance.

"We expect the reduced momentum in sales and construction will continue in 2013. High home prices and tougher mortgage-financing rules are tempering demand, especially among first-time buyers," wrote Adrienne Warren, a senior economist with Scotiabank.

"Investors also appear more reluctant to enter the market at current valuations. An anticipated softening in the pace of job growth in Canada would reinforce the slowing."

Softer prices and fewer buyers will lead to a large correction in prices in some housing sectors, particularly condominiums in several major centres if there is an oversupply compared to demand.

Despite this, the report cautions that a sharp correction in the general national housing market is unlikely unless there is a "major adverse economic shock" that weakens domestic activity and hiring.

"Ultra-low interest rates will continue to provide support," Warren wrote.

The report also points out several demographic factors that may play a part in slowing down the housing market.

For one, there will be slower turnover as many seniors choose to stay in their homes as long as they can.

Meanwhile, the report says both the immigrant population and one-person households are on the rise in Canada, and will continue to drive demand for rental units in urban centres.

The report came a week after TD Canada Trust forecast that home price gains will average only about two per cent, essentially keeping up with inflation, over the next decade.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition March 19, 2013 B6

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Bowman pledges to find efficiencies at City Hall

View more like this

Photo Store Gallery

  • A female Mallard duck leads a group of duckings on a morning swim through the reflections in the Assiniboine River at The Forks Monday.     (WAYNE GLOWACKI/WINNIPEG FREE PRESS) Winnipeg Free Press  June 18 2012
  • A baby Red Panda in her area at the Zoo. International Red Panda Day is Saturday September 15th and the Assiniboine Park Zoo will be celebrating in a big way! The Zoo is home to three red pandas - Rufus, Rouge and their cub who was born on June 30 of this year. The female cub has yet to be named and the Assiniboine Park Zoo is asking the community to help. September 14, 2012  BORIS MINKEVICH / WINNIPEG FREE PRESS

View More Gallery Photos

Poll

Are you worried Ebola might make its way to Canada?

View Results

View Related Story

Ads by Google