According to the recent survey conducted by Reuters, the interviewees assume that Canada’s housing market is going to see even higher housing prices this year. They also underlined the importance of the local housing market when it comes to backing the national economy of Canada. Still, they assume there are risks that may hinder the economic growth in the country.
It is interesting to note that the housing market growth has been one of the drivers of the economic recovery in Canada since the 2008 crisis. While getting support from cheaper loans, the housing market saw higher demand, which further favored higher housing prices across the country. As the result, the housing prices have nearly doubled over the period. Canadian households have been actively lending money to buy residential property.
The thing is that lower oil prices forced the Bank of Canada into cutting the key interest rate in half, which further fueled the price growth in the overheated markets of Vancouver and Toronto. At the same time, Alberta, a Canadian province know for its its oil businesses, saw a negative tendency with mass layoffs and lower demand for residential property, which eventually resulted in lower housing prices in the province. Local experts have already started taking about a bearish cycle in the local housing market of Alberta, which may well infect other housing markets across the country they say.
Still, the survey participants are still positive on the overall housing market of Canada. They say the prices are going to gain over 3% more this year
FOREX
Masterforex-V Academy reports that the Canadian Dollar is showing some strength against its American neighbor. The experts don’t deny the possibility of a trend reversal. The thing is that the price is moving so as to hint that the long-term rally of USDCAD is about to be over, which means the Canadian Dollar may go on with the rally it has recently started.
More specifically, USDCAD is moving within the scope of bearish wave 3/C of level Daily, which means that CAD is strengthening against USD. The closest levels of support are 1.3513, 1.3428, 1.338/75, 1.3303/29. A break above the top of the descending MF sloping channel and MF pivot is going to indicate the end of this new tendency and resume the long-term trend.
