TD Bank predicts long term housing drop

New prediction from TD Bank, suggesting that Vancouver will see a 15% drop in housing prices over the next 2-3 years.

TD Bank says Vancouver's real estate market is stabilizing after soaring last year.  Despite the recent pull back in sales volume, the market remains in balanced territory and underlying prices are continuing to expand. 

The market segment at the greatest risk of a drop?  Condominiums.  TD Bank suggest there may be enough demand to absorb new supply that has been built in recent years.  However, 20-25% are bought by investors who plan to rent them out.  If vacancy rates increase in the market, we may see the condo market suffer.  CMHC also stated that the condo trend is not sustainable and many analysts agree.

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