Canadian housing market starting to cool

A recently published report from BMO Capital Markets dismisses recent claims from various scaremongers that the market for real estate in Canada is a bubble about to pop.

Instead the report suggests that the market will slowly deflate without causing too many waves. The one region that may experience pricing drops is Vancouver where construction of the Olympic Village has led to a high number of unoccupied condominiums.

Some commentators have expressed concern that the price for property in Canada has increased far too high far too quickly and that the country could suffer a devastating housing crash like the one experienced across the USA real estate market several years ago but the report concludes that despite higher household debt, rising home prices and low interest rates the chances of a sudden price correction is highly unlikely.

Forecasters suggest the market will perform close to levels reached during 2011.