Friday, 7 December 2012

Cooler Canadian housing market may be good for parts of economy: CIBC

By The Canadian Press, as reported in the Vancouver Sun


TORONTO - One of the country's big banking groups has issued a report saying that a cooling in Canadian house prices may not be all bad news.

The CIBC World Markets says the slowing of Canadian home sales will "take a bite" out of economic growth but adds there could be "winners as well as losers across the economy."

CIBC economist Avery Shenfeld recognizes that a home owner may have to lower retirement spending if the property brings in less money when it's sold.

On the other hand, Shenfeld says, first-time buyers may welcome a letup in home prices and may have more money available for retail spending.

It's the latest in a series of CIBC reports that downplay some of the concerns about the potential for a devastating U.S.-style crash in residential real-estate.

More pessimistic analysts have warned some types of Canadian real-estate in some markets are overpriced and at risk of tipping into a rapid decline.


Read more: http://www.vancouversun.com/business/real-estate/Cooler+Canadian+housing+market+good+parts+economy/7627311/story.html#ixzz2EPpOeyma

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