23 December 2010 20:26 [Source: ICIS news]
Toronto-based Scotiabank said in a report that the country's housing market should benefit from continued low interest rates, which would keep down borrowing costs.
However, this positive factor was offset by only moderate prospects for employment and income growth as government measures to curb deficits were taking effect, the bank said.
“We are neither overtly optimistic nor pessimistic regarding the outlook for 2011," said Scotiabank senior economist Adrienne Warren.
“Overall, we anticipate a fairly lacklustre year for residential housing, with modestly higher sales volumes and flat inflation-adjusted prices - equivalent to a 2% increase in nominal terms,” she said.
“The bigger risk likely awaits 2012 when more significant interest rate increases, combined with record high home prices, will notably strain affordability,” she added.
Demand rose in the early part of 2010, driven by expectations of rising interest rates that only partially materialised, the looming transition to a new sale tax system in
According to the latest data from government housing finance agency Canada Mortgage and Housing Corporation (CMHC), the country's housing starts were running at an annual rate of 187,200 units in November, up from a 167,800 rate in October, with November’s increase caused by the start of a number of major apartment projects in the
As in the US and elsewhere, the chemical industry closely follows the housing and construction market, which is a key downstream consuming sector for a wide variety of chemicals, plastics, fibres, paints, coatings, and resins.
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