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Residential Property Price Drop Expected in Various Canadian Cities

Residential Property Price Drop Expected in Various Canadian Cities
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New data from the most recent housing report in Canada indicates that many of the nation’s biggest cities will likely face a housing slump in the next two years. Analysts believe that the housing market had been overvalued in recent years, and the market will correct itself in 2012 and 2013.

The city of Winnipeg has been identified as one of the most overvalued residential real estate markets. The data indicates that the city’s property prices are roughly ten percent higher than what they are actually worth, and that prices will soon drop by a minimum of a few percentage points.

Ever-growing fears of a global recession will likely play a significant role in the property sales performance in many of Canada’s cities. Analysts believe that many potential homebuyers will choose to wait on buying a home due to the overall economic uncertainty. As such, the market’s slowdown will cause prices to drop.

Mortgage loan interest rates are also rising in Canada, and will most certainly contribute to the expected slowdown in sales volume.

While analysts believe that the data clearly indicates difficult times ahead for the residential real estate markets in Canada’s big cities, realtors are not quite ready to throw in the towel. In fact, many realtors are expecting the next year to be a strong one for overall real estate sales.

Realtors have good reason to believe that there will be market growth. Another report that was published earlier in the month indicated that Canada’s housing market would jump by three percent in 2012.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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