Eric Beauchesne, Canwest News Service Published: Thursday, May 15, 2008:
Scotiabank's projected plunge in sales this year was nearly double the 8.5% drop expected by the federal housing agency, which also released its forecast for sales, prices and housing construction starts for this year and next.
However, neither Canada Mortgage and Housing Corp. nor Scotiabank expect a major housing market meltdown as followed previous housing booms in the 1980s and 1970s, or has occurred over the past year in the United States.
"At the end of the day, we predict a soft landing for the Canadian housing market, with somewhat lower sales and construction, and a period of relatively flat inflation-adjusted home prices," Ms. Warren said.
CMHC agrees.
"Strong economic fundamentals such as continuing high employment levels, rising incomes and low mortgage rates will provide a solid foundation for healthy housing markets this year," said CMHC economist Bob Dugan.
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On the national level, house prices are nowhere near to Vancouver's prices. The April 2008 benchmark prices as reported by the Real Estate Board of Greater for detached homes, townhouses and condos were $771,321, $477,900 and $389,070 respectively.
The questions is "Will the cooling down in real estate market in Canada, result in Vancouver prices coming down 5% or 10%?".