Toronto housing market headed for cool down, BMO predicts
Wed Dec 28 2011
Vancouver’s hot housing market is headed for a cool down in 2012. So is Toronto’s.
With GDP growth of just 2 per cent next year, slowing job growth and record-high household debt makes it highly unlikely that we’ll see a repeat of this year’s “surprisingly perky performance” of Canada’s housing market overall, warns Porter in a report.
Leading the way was Vancouver where house sales were up 16 per cent in November 2011 over a year earlier as the seasonally adjusted price of a house hit $756,512.
“That won’t be repeated next year there are already clear signs that sales are dipping, and price increases are starting to ebb,” says the report.
“Toronto has seized the mantle of hottest major market in recent months, and appears to be at some risk of overheating.”
In second-place Toronto, home sales were up 9.7 per cent in November over a year earlier as the average house price surpassed $480,000 for the first time.