Cooling housing market not all bad news says CIBC

[np_storybar title=”Hard or soft landing? A look at Canada’s housing market since 2001″ link=””%5DRecent cooling in Canada’s housing market has many believing we will escape a painful correction, but not all are convinced. Check out this review and decide [/np_storybar]TORONTO — One of the country’s big banking groups has issued a report saying that a cooling in Canadian house prices may not be all bad news.The CIBC World Markets says the slowing of Canadian home sales will “take a bite” out of economic growth, but adds there could be “winners as well as losers across the economy.”CIBC economist Avery Shenfeld recognizes that a home owner may have to lower retirement spending if the property brings in less money when it’s sold.On the other hand, Shenfeld says, first-time buyers may welcome a letup in home prices and may have more money available for retail spending.It’s the latest in a series of CIBC reports that downplay some of the concerns about the potential for a devastating U.S.-style crash in residential real-estate.More pessimistic analysts have warned some types of Canadian real-estate in some markets are overpriced and at risk of tipping into a rapid decline. read more