Deep Freeze: Royal Bank

Bungalow Dept: Sales of existing homes will hit 451,200 units this year, less than one per cent above the 2010 figure of 447,000, and will be almost unchanged in 2012, the bank forecast. Sales of about 451,000 would be four per cent below the average during the past seven years, the bank said, according to CBC. Forecast higher interest rates "which will cool demand but not deep-freeze it" are behind the slowing, the bank said. Real economic increases and population growth from immigration will offset the higher rates, " leaving resales activity largely flat overall" in 2012 and resale housing markets in Canada are headed for a "significant slowing" over the next year, the Royal Bank said Thursday. Meanwhile, the price for a detached bungalow will rise 4.4 per cent this year, and 0.4 per cent in 2012, the bank said. That follows an 8.4 per cent jump in 2010. As reported in the news.
@t forecast sales, population growth