Sky-high house price increases won't continue: Scotia economist
Canadians expecting the sky-high house price increases of the past decade to continue will be disappointed, a Scotiabank real estate expert said Tuesday.
"It's time to reset price expectations for the Canadian housing market," Adrienne Warren, senior economist with Scotiabank, said at a real estate conference in downtown Toronto. "This was an exceptional decade for pricing."
Looking at the past 50 years, prices on average rose between 2% and 2.5% each decade. But prices rose an average of 5.2% between 2000 and 2009, she said, which led to the current elevated pricing conditions.
"Some of that reflects a very strong global economy, a commodity boom, unemployment rates falling, all very positive for housing," Ms. Warren said.
She added tht some very lean years between 1990 and 1999 meant there was an element of "catching up" going on over the last decade. Average prices increases between 1990 and 2009 was slightly less than 2%, she said.
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From: www.canadabubble.com/b...omist.html
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