Good news! You still have a year to cash out of the housing market before it ‘corrects’. TD says housing correction coming in 2013.
A correction in Canada’s blistering real estate market is set to take hold in 2013, economists at TD said on Wednesday in a note to clients. The remarks come in the wake of figures released by the Canadian Real Estate Association (CREA) showing sales of existing homes fell 4.5 percent in January from the previous month.
So.. plenty of time to install that laminate, paint the place up and stage it.
“This month’s decline is likely reflective of what will shape up to be a softer year in sales, especially when it comes to Toronto and Vancouver condos,” Jacques Marcil, Senior Economist at TD, said in a note. “We anticipate growth will slow down in 2012 both in terms of sale volumes (+0.5%) and prices (+2.5%).”
“In contrast, the actual correction is foreseen to start in 2013, with both resales and prices turning negative.”
In recent weeks a number of executives at the country’s largest banks and economists have voiced concerns over high real estate values. The head of the country’s largest seller of uninsured mortgages recently told BNN that certain areas of Canada’s real estate sector are “overheated.”