For the upcoming year, the price of homes according to the latest economic point of view from RBC, will have come to a severe slowdown. Subsequently following the increase of 10 per cent in the prices during last year, the lender mentioned that they anticipate an increase of 5 per cent for this year, with a slowdown of 1 per cent in the upcoming year.
The fall during next year will escalate as a result of the rise in interest rates and the continuous fall in the sales of home, which is expected to go down by 5.3 per cent this year. There were early signs rendering to what RBC mentioned, which showed that the change in the policy of the Ontario government to have the real estate market cool down, particularly in Toronto, is having an impact and they stay hopeful that the market will eventually become stable.
To sum it all up, the economist of RBC are staying positive in regards to the economy in Canada. Senior vice-president and chief economist at RBC, Craig Wright said; “Canada’s economy is on track to post its strongest gain in three years. While we don’t discount the risk of a slowdown resulting from the pending renegotiation of NAFTA or the expected cooling of the housing market, we remain confident the economy will continue to grow at an above-potential pace for the remainder of this year.”