However, perhaps the CB prediction came a bit too early. Canada faces strong economic headwinds due to the collapse in commodities prices, and our dollar has reached 13-year lows against the US Greenback. We’re importing inflation due to a devaluation in our dollar, yet our own central bank is powerless to raise interest rates to prop up our dollar in such a challenging economic environment. Not to mention that there are few tools left to trigger economic stimulus in the proverbial economic tool chest.

I predict 2016 will be a time of great economic challenges for Canada’s economy and regional real estate markets nationwide. The real estate downturn in Western Canada (due to falling oil prices) could result contagion to markets that have been more resilient to a downturn, such as Vancouver and Toronto. Speaking of which, it’s been speculated that much of the rise in housing prices in the former has been due to Chinese nationals looking for a safe place to ‘park’ their money offshore. With China’s economy facing growth challenges, and Chinese stock markets well into bear-market territory, the ongoing influence on Vancouver’s housing prices by Chinese buyers could be greatly diminished.

In light of the foreign and domestic economic headwinds facing our country, I would speculate that those looking to sell their home, do so in haste. The days of watching your property appreciate in value (on paper anyway) may be coming to an end.

/my $0.02