Average home prices are set to fall as much as 10 per cent over the next two or three years, according to economists at one of Canada’s big banks.

The experts at Scotiabank have said the housing market is heading for a correction, with price adjustments concentrated in Toronto and Vancouver.

The demand is expected to soften, making conditions better for a buyers’ market to re-emerge.

The bank said Canada will likely avoid the sharp drop seen during the U.S. housing crash.