Canada’s housing market has been defying gravity lately, and there has been no shortage of warnings of a reckoning to come.
But while some see double-digit declines ahead, Capital Economics believes that despite areas of weakness, home prices will rise 12% by the end of 2022.
Home sales and prices saw record gains during the summer, but not all types of housing are seeing the same demand, said Capital economist Stephen Brown.
Though the Canada Real Estate Association does not break down its data into housing type, Capital has learned from local real estate data that house sales are exceeding apartment sales.
In the Greater Toronto area, for example, house sales were up 50% in August from the year before, while apartment sales were 11% higher.
Year to date, house sales were 1% higher, while apartment sales