This one seems to be pushing the laws of economics just a bit.
TD Bank has now put out its quarterly update on where housing prices are headed in Canada. They break it down by province and have said that, broadly, values and activity are going to soften in the year ahead after peaking this year. That is largely because of higher interest rates which are affecting affordability and buying activity is declining.
There are, of course, exceptions and Saskatchewan is one of them.
In Saskatchewan, they say the next 18 months will be a bit of contrarian story. Demand will fall but prices will go up. That’s the contrarian part. Normally, if demand falls, we should expect prices to drop as well, but not in this particular market.
TD says Saskatchewan will see sales activity drop by 10 per cent this year and nearly eight per cent next year. Those figures are lower than the national averages. But, even so, prices here are still rising. They see three per cent this year and a further two per cent in 2023 when we will be among the only provinces where home values are continuing escalate.
