House price correction due in Canada
Most experts agree that residential property in Canada is overpriced, how much is up for discussion – anywhere from ten to 25 per cent depending on which report you read.
As well as inflated property prices concern is building over mounting household debt across many regions.
Various economists fear that certain measures need to be put in place now to avoid serious consequences further down the road. Some suggestions include changing the life of a mortgage from thirty years to twenty-five, raising the minimum deposit from 5 per cent to 7 per cent.
More than one industry organisation forecast price correction for property in Canada over the next couple of years – on a gradual decline rather than a sudden price crash.
Two areas of major concern are Vancouver where local buyers are often out-priced due to the influx of wealthy foreign buyers and in Toronto where there is a surplus of recently built condos.