In defiance of dismal predictions for the past eight years, Canada’s real estate sector has enjoyed continuous growth with no signs of stopping anytime soon, according to a BMO economist.
Douglas Porter’s report, “Canada's Non-Goldilocks Housing Market and the 33 Bears”, pointed at the steady increase of average real estate value, with February seeing an “all-time high of more than $500,000” after reaching over 60 per cent growth compared with 2008 figures.
Porter noted that doomsayers have been misrepresenting the state of the industry for years now.
“Hey, forecasting is hard. But let's not give a pass to some of these scaremongers who have been dead wrong,” Porter told HuffPost Business Canada
on Wednesday (March 16).
Other BMO economists warned that there are still risks, especially since the likelihood of a price correction has increased in oil-producing regions like Regina and Calgary.
“In both cities, strong population flows and double-digit price gains fueled a significant jump in new housing starts. But with unemployment on the rise and population growth set to cool, that new supply is coming onto an already-stagnant market,” Robert Kavcic said back in January.