Vancouver Housing Market to Slow as Economy Strengthens

A recent report released by TD economics forecasts a housing market slowdown across the country as the economy improves.  The Canadian housing market has for most of 2009 outperformed the economy, but by 2011 the report states this dichotomy shall be reversed. Market conditions shall weaken due to a number of factors.  Those being:

• Eroding affordability
• End of pent up demand
• Eventual rise of interest rates

Is there another bubble developing in the Canadian housing market? Not likely says TD economist Pascal Gauthier.  "The most likely outcome is a soft landing and relative stagnation of home values in real terms ... over the 2011 -2013 time frame." In the shorter term Gauthier feels a tight home market will help propel homes values another nine to ten percent over the course of 2010.

For more information on Vancouver real estate market conditions visit www.deanwegman.com.

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