TD predicting flat housing market

A new report from one of Canada’s biggest banks says the country’s real estate market will remain flat for the next ten years.

The TD Bank report forecasts average house prices will move lower for the next few years, before modestly re-bounding after 2015. TD predicts house prices will increase by two per cent a year, keeping pace with inflation.

That’s the weakest rate of growth for Canadian home prices since 1980, and far below the seven per cent annual price gain seen over the last decade. The bank says contributing factors include the aging population, modest growth in population, the economy and, eventually, higher interest rates.