Both Vancouver and Toronto’s housing markets are poised for major long-term price growth, according to a top economist with one of Canada’s big five banks.
Benjamin Tal, deputy chief economist of CIBC World Markets, drew that conclusion when looking at whether there’s a chance in the short term for prices to marginally flatten or soften. “I think that from a long-term perspective, everything we are doing is temporary. The fundamentals are way too strong offsetting all of that.”
In particular, Tal said, people will turn to private lenders and credit unions who are not affected by the new regulations and continue to pile into the Toronto and Vancouver markets — making both cities even more unaffordable.