No Down-Turn in Housing Market - CIBC

Another Canadian Bank has come out in support of the continuing health of the Canadian housing market. Last month RBC's report indicated there was no bubble, particularly in Toronto and that housing demand in Toronto would continue to grow and support the market, although, there might be a small correction in prices.   Last week, Benjamin Tal, deputy chief economist at CIBC World Markets, (http://tiny.cc/gzpijjw) analyzed the important 25-34 age group as being a prime mover of the market place and that they will continue to buy houses, some with the help of well off parents. He added that growth in housing market could also be even stronger due to immigration, which in Toronto is 80,000 to 100,000 people a year.   As young people move out to take on full time jobs, they will be the ones seeking new housing and quite often in the condominium market.   Tal saw any "correction" in housing prices as being minor and following inflation.   In the short term, demand may soften and prices may flatten out or marginally drop. For the mid to long term, the outlook is good for Canadian residential housing.