Home prices will remain fixed for the rest of this year before recovering in 2020.
A panel of economists and analysts called by Reuters says lower mortgage rates and solid economic conditions will raise prices next year.
But homeowners and investors who expect a new Canadian real estate boom seem to have no luck; The panel expects growth to be a mode up to 1.8% in 2020.
The strong labor market and population growth will be key factors in next year’s price increases.
“There are opinions of the factors that are in place for continuous recovery, but again it will be a slow recovery, not a sharp setback,” said Robert Hogue, senior RBC economist Robert Hogue.
Housing prices in Toronto have already recovered and are now determined to increase by 2% by 2020 compared to a previous 1.3% panel.
However, prices in Vancouver are now expected to register a stronger decline in 2019 than previously thought; The panel creates a 5.5% decrease compared to the 4% forecast in May. There will be a modest rebound in 2020.
Housing demand is expected to increase: 13 of the 17 on the panel said so, with three asking for stable maintenance and 1 waiting for a decline.
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