Toronto Dominion Bank forecasts Canadian home prices to drop in 2011

The Toronto-Dominion Bank forecasted on Wednesday that the prices of Canadian homes are going to drop slightly in 2011. Due to the previous warning by Bank of Canada on  increasing interest rates, this will make the margin borrowers harder to purchase property.

Toronto Dominion had earlier predicted a 1.6 percent rise in property prices in 2011, it now expects them to drop by 2.7 percent. With the market demonstrating a strong listing inventory, the Seller's markets may ease and become more balanced in 2011. TD predicts in 7 out of the 10 provinces, it is likely there is going to be a drop in property prices, with Ontario to have the most significant fall.

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Globe and Mail - House Prices To Drop: TD