Is this the Beginning of a Free Fall for the Housing Market?

Mario Lefebvre


Director

Centre for Municipal Studies

September 07, 2010

Mario Lefebvre
Director
Centre for Municipal Studies

The housing market has lost its lustre. No doubt about it. However, this will not lead to a free fall for Canada’s housing market. This country will not experience home price declines to the tune of what we have witnessed in the United States over the past few years.
In all likelihood, the next few months will not be the best in history for Canada’s resale and new housing markets. Economic growth is slowing, the harmonized sales tax (HST) came into effect in Ontario and British Columbia and consumer confidence is being challenged by the potential negative impacts on the global economic outlook of the European debt crisis and a jobless recovery in the United States. These factors have already put a dent on housing demand and will continue to do so in the coming months.
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