Barrie, Ont., and Regina, Sask., may not leap to mind as the most likely locales for short-term house price corrections in Canada, but that’s what Moody’s Analytics is predicting in a new report being released Wednesday.
“The largest corrections will be in those metro areas that have a combination of recent house price declines, high overvaluation and slower projected income growth,” according to the report from the research arm of Moody’s Corp. “Barrie and Regina lead the list.”
Moody’s Analytics, which operates separately and independently from ratings agency Moody’s Investors Service, projected median single-family home price growth (or contraction) over the coming year based on year-to-date figures.
Overall, the report projects a fairly stable Canadian housing market with no major short-term correction over the next five years. In markets where there are house price increases, those are expected to continue to moderate, and could be offset by higher income.