Scotiabank released their Global Real Estate Trends report today and found that many “residential property markets around the world remain under considerable stress” with the majority of the markets they track showing y/y declines in Q1 2012.
Regarding Canada in particular, Scotia writes:
Canada’s housing market remains an outperformer among developed nations, but conditions here too have cooled. Adjusted for inflation, the national average house price fell 2% y/y in Q1.
Price trends are relatively steady in the majority of local markets, though a few, notably Toronto, continue to report strong appreciation. Despite historically low borrowing costs, demand has been tempered by moderate income growth and tighter mortgage insurance rules.
Meanwhile, supply conditions are becoming better balanced in most parts of the country. We anticipate fairly flat sales and average prices over the latter half of the year.
It’s looking like Calgary can’t be included in the “most parts of the country” category as sales levels are far elevated from the last several years.
You can view the entire report here
Eyes on Toronto & Vancouver
Earlier this week, TD released a report on the two cities stating that they expect both markets to experience a price correction of at least 15% in the next 2-3 years.
TD believes the correction is likely to be reasonably gradual, but a quicker & more pronounced correction could occur if the Canadian economy were to get hit by a severe shock from abroad.
You can read that entire report here