Markets appear generally optimistic to the start of the week. There has been news of some progress in negotiations to avoid the fiscal cliff in the United State, Bond yields are up about 3 bps.
Sales of existing homes fell 1.7% in Canada last month, compared to October. Sales were down nearly 12% compared to November of last year. The Canadian Real Estate Association has also lowered is sales forecast for this year and 2013. CREA now sees a 0.5% decrease in sales for this year, a downward revision from September’s projection for a 1.9% increase. The 2013 estimate has also been moved lower with the Association now looking at a 2% decline. The realtors also say prices are slipping with November coming in 0.8% lower year over year.
Over the next two to three years, analysts have predicted price corrections anywhere from 10% to 30%. In the country’s hottest markets they also believe that the higher numbers are not out of the question.