Sadiq Adatia, chief investment officer of Sun Life Global Investments Inc., offered that analysis at the Bloomberg Canadian fixed-income conference in New York this week.
“I don’t think the demand is going to be there for housing,” Adatia told the audience of industry stakeholders reports the National Post. “I do think it’s a dead cat bounce.”
While sales climbed in both Toronto and Vancouver in August, representing a return to a seller's market, the increase was helped by fears of rising interest rates. Those fixed rates continue to edge upward, with real concern that movement will continue and hurt demand levels as Canadians struggle to qualify.
The market was expecting real value falls coming off of mortgage rule changes in July 2013.
While the number of sales did drop, prices in the country's largest market continued their rise.
Adatia is suggesting that growth can't be sustained in a high interest rate environment. Many other analysts disagree.
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