Now TD Economics is chiming in with more negativity on the Canadian housing market:
TD Economics now forecasts that Canadian housing prices, already off 3.7 per cent this year, will fall another eight per cent by mid-2011, said economist Diana Petramala. As well, she said, growth in the economy will crawl along for the remainder of 2010 with growth of less than two per cent annualized, edging up to only two per cent in 2011.
That ongoing collapse in national house prices is being driven by the big overpriced markets. I wonder if they’ve got a prediction for Vancouver prices?
That article also points out that the most recent statscan stats show dropping household net worth in Canada for the first time since the recession.
Household net worth — wealth minus liabilities — fell 0.6 per cent, or by $34 billion, to $5.9 trillion in the second quarter, as stock market holdings lost value, and liabilities, particularly mortgages, rose.
It was the first time since the recession that household net worth fell.
“Weak asset growth in combination with still strong liability growth will likely have households feeling buried under more debt than they ever have,” said Petramala
Oddly enough this outlook doesn’t seem to have affected TDs mortgage offerings yet, I wonder if the CMHC has any comment on this?
Thanks to paulb for the link!