'Soft landing' predicted for Canadian home prices

Analysts at Fitch Ratings think Canadian home prices are overvalued by up to 26 percent in some markets, but predict low unemployment and tighter mortgage lending standards will help ensure a “soft landing,” with prices flattening or decreasing slightly during the next five years.

That view is shared by economists with the Conference Board of Canada, who say it would take “a significant negative surprise like an interest rate spike or employment collapse” to set off a crash, The Vancouver Sun reports.

Sales of existing homes fell 3.2 percent from September to October, but were up 8.2 percent from a year ago, the Canadian Real Estate Association reported last week. Source: vancouversun.com