A poll of analysts by Reuters warns that growing supply of housing coupled with rising household debt could derail Canada’s economic growth. With sales slowing in many areas while household budgets are stretched by borrowing the experts believe that the days of the housing market providing a boost to the overall economy are ending. “We have relied on housing and housing investments to carry growth through most of the post-recession period and it’s time for the housing market to put its feet up and take rest,” David Watt, chief economist with HSBC Bank Canada told The Globe and Mail. The Reuters’ poll called for 2 per cent growth in house prices in 2016 followed by 1.7 per cent in 2017. A third of analysts predict a correction by 2017.
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