The renewed slowdown in global economic activity is putting further downward pressure on already-weak residential property markets across much of the developed world, according to the latest Global Real Estate Trends report released Tuesday by Scotia Economics.
And while Canada’s hot housing market also has begun to cool, it remains a “notable outperformer,” says Adrienne Warren, senior economist and real estate specialist with Scotia Economics.
Of the nine major developed markets tracked by Scotia Economics, with available second quarter data, only Canada, France and Switzerland registered positive year-over-year real price growth.
The report said Canada’s housing market stands out in its resilience and longevity. Average inflation-adjusted existing home prices were up five per cent year-over-year in the April-June period, on par with the first-quarter’s pace of appreciation. Data for July and August point to continued firm but stable sales through the late summer, alongside a levelling out in prices, it said.
“Ultra-low interest rates will continue to support affordability in the face of record high prices,” said Warren. “Nonetheless, heightened economic uncertainty combined with recent signs of a loss of momentum in Canada’s jobs market could keep some potential buyers on the sidelines for the time being. On balance, we anticipate a modest slowdown in the volume of sales transactions heading into year-end, alongside relatively flat prices.”