For the upcoming year, the price of homes according to the newest economic point of view from RBC, will have come to an austere slowdown. Successively, following the increase of 10% in the prices during last year, the lender revealed that they expect an increase of 5% for this year, with a slowdown of 1% in the upcoming year.
The fall during next year will worsen 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% 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 optimistic that the market will eventually become stable.
To sum it all, 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 sturdiest gains 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.”
J C Loum