Scotia Not Buying The Recovery ‘Hype’

Housing market statistics are trickling in from around the country and while CREA won’t have the national figures ready until the middle of the month, the numbers have thus far been fairly positive compared to a year ago.

But Scotia isn’t buying it.

The July 4, 2013 Daily Points written by economists Derek Holt &  Dov Zigler, states:

The press reports applaud the rise on year-ago figures. Recall, however, that it was last June when the bottom really began to fall out of the Vancouver  [and Toronto] market[s].

“I therefore don’t buy the hype that the correction is bottoming or reversing just because the year-ago pace of decline is ebbing. That’s just a mathematical artefact that drops out of comparing to the steep declines that began in the Spring of 2012.

I’m looking forward to reading BMO’s response as the two banks seem to have some very differing outlooks on the Canadian housing market.

Related post:

Source: Scotia Economics (click to enlarge)

Source: Scotia Economics (click to enlarge)

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