Canadian Housing Correction Accelerates, Prices Seen Falling 25%
Desjardins updates forecasts after RBC warns of historic drop
Rate hikes drive rapid reversal of pandemic real-estate frenzy
Canadian homes could lose as much as a quarter of their value as market declines set off by rapidly rising interest rates play out much faster than anticipated, according to Desjardins Securities Inc.
After hitting a peak in February, average home prices in Canada are now expected to fall as much as 25% by the end of next year, economists Randall Bartlett, Helene Begin and Marc Desormeaux said in a report Thursday, with both the declines so far and the rate hikes driving them already out-pacing previous forecasts.
Read the full article here: