A significant report from the National Bank outlined that the price of homes in both Vancouver and Toronto will be forced to go through a forthcoming correction in the near future.
The declining trend in the sales of home faced by the housing market in Vancouver started back in March when the single-family home was first struck before it spread to apartment four months later.
This started even before the 15 per cent tax on foreign buyers was introduced. It is believed by the National Bank that Vancouver will likely start to experience a correction in its prices, and have it reduced by 10 per cent in the coming year, while detached home will face a drop of 20 per cent.
The report said that the soaring prices in Toronto which are caused by the tight supply will start to calm as the higher mortgage rates and recent mortgage rules in Ottawa moderate sales. The tight inventory in Toronto will cause the price in that end to be way lower (at around 3 per cent) than that of Vancouver.