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.
Scotiabank provides clients with in-depth commentary on the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.
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For further information:
Adrienne Warren, Scotiabank Economics, at (416) 866-4315, or [email protected]; or
Joe Konecny, Scotiabank Media Communications, at (416) 933-1795, or [email protected].
For more Scotiabank economic publications visit http://www.scotiabank.com/ca/en/0,,3112,00.html