Canada house prices to rise sharply on cheap money, speculation

By Anu Bararia

BENGALURU (Reuters) – The sharp acceleration in Canadian home prices shows no sign of abating this year, though economists expect the pace will be reined in by high household debt and a growing lack of affordability, a Reuters poll found.

Foreign wealth, cheap borrowing costs and bets that urban centers Vancouver and Toronto will remain profitable will likely support the Canadian property market over the next few years.

House prices are forecast to rise 10 percent in 2016, almost double the pace expected in May’s survey, and the fastest since polling for 2016 began two years ago, according to the …
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