Canada’s third largest mortgage lender is talking of a drop in home sales and a slowing of prices in the country’s hottest markets next year.
TD Bank predicts that, after a long run of increases in Ontario and British Columbia, 2016 could see prices start to ease with sales dipping. The change could last into 2017 at least due to “signs of extreme weakness,” the bank says.
Prices will be slowed by falling sales volumes. In Ontario, it predicts sales will decline by 1.4 per cent next year followed by a nine per cent drop in 2017. For B.C., the prediction is a 7.4 per cent drop in 2016 and 14.1 per cent in 2017.
The impact on prices will be a slower pace of 1.9 per cent in 2016 and a one per cent decline in 2017 for Ontario; BC will see also see prices rise next year, but at a slower pace of 4.3 per cent, followed by a 1.2 per cent drop in 2017.
Newfoundland and Labrador, PEI, New Brunswick and Saskatoon will see prices fall next year before recovering in 2017. Manitoba and Quebec are predicted to see prices rise over the next two years.
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