And the only way is up for house prices, or so believes the many Canadians that are increasingly optimistic about the market.
Forget small corrections and bank warnings, more Canadians believe that the real estate market will remain buoyant in the near future.
Over 50 per cent of respondents to a point2homes survey say they expect house prices to rise this year in their local market, while 26 per cent expect them to stay the same. The majority of those who believe house prices will increase believe it will go up by 8 per cent.
Twenty three per cent of the 1,232 respondents say they believe prices will decrease with some anticipating a drop of around 14 per cent.
Albertans were the most positive about market conditions, while those residing in Saskatchewan were the most negative.
This survey came in the wake of a warning by the Canadian banking regulator to both lenders and borrowers. Mark Zelmer advices both parties to be careful about moving deeper into the housing market, saying that risks are increasing.
“It is clear that the ability of the household sector as a whole to absorb major shocks is less now than it was a decade ago ... So, from a prudential perspective, the environmental risks associated with lending to households are higher now than in the past,” he said at a recent housing conference.