Cooling in Canadian home prices will result in winners and losers: CIBC
Posted Nov 29, 2012 12:45 pm.
This article is more than 5 years old.
The CIBC is out with a report, which states that a cooling in Canadian home prices may not be as bad as it sounds.
While the report suggests slower home sales will take a bite out of economic growth, there may be winners as well as losers across the economy.
CIBC’s chief economist Avery Shenfeld said this means homeowners may have to lower retirement spending if their property brings in less money when it’s sold.
However, for first time buyers, it’s a welcome let-up in prices which may leave them with more money for retail spending.
This report is the latest in a series from CIBC which downplays some of the concerns about the potential for a U.S.-style crash in residential real-estate.
Pessimistic analysts are warning that certain types of real-estate in some markets are overpriced and risk falling into a rapid decline. However, the consensus appears to be that if there is a correction, it will likely have a softer landing than what happened south of the border.
