TORONTO, June 7, 2013 /CNW/ - Global housing activity in early 2013 was
mixed, mirroring the uneven pace of global economic growth, according
to the Scotiabank Global Real Estate Trends report released today.
The report finds that in the majority of national markets, housing
conditions are fairly steady, and average home prices relatively flat.
However, in a number of countries, primarily in emerging Asia and Latin
America but also in the United States, home prices are again
accelerating, supported by relatively stronger domestic economic
conditions. In others, namely the struggling nations of southern
Europe, deep price declines are continuing.
"Highly stimulative monetary policy conditions, reinforced by additional
easing measures internationally through the spring, should provide
support to the interest-sensitive housing sector," said Adrienne
Warren, Senior Economist at Scotiabank. "However a faster and more
synchronized improvement is contingent on a strengthening in global
economic activity, labour markets and consumer confidence."
According to the report, Canadian inflation-adjusted home prices were
unchanged year over year in the first quarter. Housing demand remains
healthy, but has cooled amid tougher mortgage refinancing rules and
slowing employment and income growth. The report forecasts further
downside risk to sales and prices.
Scotiabank's report also examines the rebalancing underway in Toronto's
housing market in the wake of affordability pressures, inventory build,
changes to mortgage insurance rules and more cautious lending policies.
"Sales and construction have already shifted notably lower in Toronto,
and prices are beginning to level out," said Ms. Warren. "We expect
this adjustment process to continue into mid-decade, with downside risk
to prices, particularly in the condominium market where supply
additions are expected to outpace underlying demand."
Please read the full report below at http://www.scotiabank.com/ca/en/0,,3112,00.html.
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