Housing Prices Forecasted to Drop 10 Percent: TD Bank

Housing prices are expected to drop 10 percent over the next several months, according to a newly released TD Bank forecast. The bank had predicted a 5 percent drop in prices back in September, but has now revised its forecast to double that number partly due to the “larger-than-anticipated loosening” of the housing markets in Ontario and British Columbia and partly due to the bank’s upgraded bond yield forecast. Bond yield is the rate of return a bond generates. “Ontario’s sales-to-new listings ratio has plunged to 39 percent in October from 63 percent in May,” the report said. “A sudden surge in supply is largely behind the deterioration in the ratio, abetted by a more prolonged drop in sales.”...