Newspaper article The Canadian Press

Housing Market Slowing Down Due to Less Demand, Tougher Mortgage Rules: Report

Newspaper article The Canadian Press

Housing Market Slowing Down Due to Less Demand, Tougher Mortgage Rules: Report

Article excerpt

Canadian housing market slowing down: report

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TORONTO - Canada's housing market is expected to continue to soften this year, as fewer people look to buy and home construction begins to slow down, according to report released Monday.

The report says housing prices are beginning to level out and home building rates are decreasing, in response to the market getting back into balance.

"We expect the reduced momentum in sales and construction will continue in 2013. High home prices and tougher mortgage financing rules are tempering demand, especially among first-time buyers," wrote Adrienne Warren, a senior economist with Scotiabank (TSX:BNS).

"Investors also appear more reluctant to enter the market at current valuations. An anticipated softening in the pace of job growth in Canada would reinforce the slowing."

Softer prices and fewer buyers will lead to a large correction in prices in some housing sectors, particularly condominiums in several major centres if there is an oversupply compared to demand. …

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