In the United States, real estate analysts see a bubble that is about to burst; in Canada, however, after a decade of slow but steady growth, the forecast is for a slow and controlled decline.
Higher home prices and recent modest increases in interest rates will put the brakes on real estate activity, but the broad expectation is for growth, at least in the short term.
Royal LePage, one of the largest real estate firms, is expecting house prices to grow about 6 per cent this year, following another year of record growth in price increases and sales.
At the same time the number of transactions across the country is expected to fall by about 3 per cent.
In its national forecast of market activity, Royal LePage said: 'Higher home prices in major markets, a general perception of slower market conditions and moderate interest rate increases are forecast to temper market activity as unit sales pull back from the records of 2005.'
Once more, much of the market activity across the country is being driven by the impact of the energy boom in western Canada.
