Monday, 11 June 2012
Toronto, Vancouver Housing Mkts 15% Overvalued -TD
Canada's two biggest housing markets, Toronto and Vancouver, seem to have diverged in recent months with the pace of sales slowing and prices declining in Vancouver, while Toronto retains a full head of steam. Average price changes can be deceiving and other measures indicate the divergence is less dramatic, it says. "The real parting of the ways seems to be between the market for single-family homes, where limited supply has kept prices firm, and the condo market, where construction booms have kept price increases more modest for both markets," it says. TD sees the divergence diminishing, but believes that, longer term, both markets are likely 15% overvalued.