A recent Reuters poll has revealed that Canadian home prices are expected to rise a little over five percent this year, and then another two percent in 2016*.
Defying a shrinking economy that is being blamed in part on slumping oil prices, house prices have kept climbing. This has resulted in survey opinions from over 20 analysts who predict that home prices will rise 5.2 percent this year, a sharp increase from the forecasted 3.4 percent increase documented in June's survey.
The latest housing price expectations for 2016 and 2017 have also been revised upwards, to 2.0 and 2.3 percent from 1.3 and 1.7 percent respectively.
Average home prices have doubled over the past decade, but 13 of 19 survey respondents said the housing market remained affordable - at least on a national basis – because low interest rates have kept debt service costs under control.
More housing inventory is on its way: the Reuters poll also showed home building in Canada is expected to remain robust over the next year and average around 180,000 units.
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