According to the Conference Board, not surprisingly, the housing market seems to be the only really bright spot going forward for Canada’s economy in 2016 and into 2017.
Meanwhile, one of the mainstays of economic growth in any country, retail consumers are getting just plain tired and stretched thin by their borrowing binge.
Even though interest rates are at record lows, the weak jobs market, stagnant if not non-existent pay increases, and higher inflation are starting to take their toll on the Canadian economy.
In numbers similar to the those issued recently by the International Monetary Authority, growth for the balance of this year is expected at a lame 1.4% and pickup to a modest 2.1% in 2017.
However, housing prices, according to the Conference Board, are going to continue to escalate.
Not good news at all for first time home buyers, but a plus for home owning consumers who will have the opportunity to juggle some debt at low interest rates.
The Conference Board forecast, driven again by Vancouver and Toronto real estate, is expected to see home prices rising at the fastest pace in three decades, up 13.5% in 2016, and finally a more moderate (and can we say normal) 4.2% in 2017.