Home sales in Canada is set to rise by 0..3 percent but readjusted estimates put sales of homes at 475,800 homes in 2012 up 3.8 percent from the figures in 2011, according to a report released by the Canadian Real Estate Association on Friday.
“Activity in Greater Toronto is stronger this spring than it was last year, and higher-priced homes are still selling quickly. As Canada’s most active housing market, and one of the priciest, it is still the biggest factor boosting the national average price but its support was less of a factor in May,” said Gregory Klump, CREA Chief Economist in the statement.
Meanwhile, the federal Finance Minister Jim Flaherty warned Canadians against moderate borrowing saying that household debt was the number one enemy for the domestic economy, according to the Montreal Gazette.
The average rising price of Canadian houses could spell out a bubble if financial markets get any kind of shocks.
Banking analysts are on edge this weekend as Greek elections in Greece could spell an exit from the Euro wreaking havoc on markets.
