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Canadian home resale market outlook:

Blog by Barb Pasternak | August 28th, 2010

Robert Hogue
Senior Economist
(416) 974-6192

Canada’s housing market’s rollercoaster ride continues to generate wild swings as it rushes
down at an unnerving speed from the highs that caused vertigo just a few months ago. With the
move toward lower, more sustainable levels of activity accelerated by a number of special loops
and turns, trepidations are likely to last a little while longer. The Canadian housing market will
remain on the rails, however. Once cleared of these loops and turns later this year, it will land
on a less stressful pitch.
This report presents our forecast for home resales and prices in Canada and the provinces.
Overall, resales are projected to decline modestly in 2010 and remain fairly flat in 2011, although
there will be provincial variations. Some provinces (e.g., Alberta and British Columbia)
will see a sharper drop this year, while others (Atlantic Canada and Ontario) will post gains.
Similarly, next year, some provinces (e.g., Saskatchewan and Alberta) will experience a
stronger rebound while others (Ontario and Quebec) a decline. Home prices (on an annualaverage
basis) are projected to rise quite strongly across the board in 2010, although this is entirely
attributable to the gains during the first half of this year. Much weaker increases are forecasted
for next year.
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