Canada’s real estate market could fall more than 10%, putting Canada’s economy into a recession, according to Capital Economics. Real Estate prices are already falling, a trend that is expected to continue as the housing market responds to increased interest rates from the Bank of Canada.
As Canada’s real estate prices continue to fall Capital Economics says that will spur a decrease in residential investment (construction, renovations, etc). With the construction industry contributing such a large percentage to Canada’s GDP this will cause a real drag on the economy.
Should real estate prices fall below 10% this will push Canada into a recession, which will put further downward pressure on Canadian real estate.
Will a housing downturn crash the economy?:
The Great Moderation? Tightening cycle spurs softer housing demand this spring:
Spring has sprung, but Canadian home sales on ice after Bank of Canada forces rate hikes:
Posthaste: The way the housing market is stalling, the Bank of Canada may have to hit the brakes sooner than expected:
Consumer price index portal:
Housing market slowing rapidly amid interest rate hikes:
More than half in B.C. already feeling pressure of rising interest rates:
Homebuyers set to lose unprotected deposits of up to $150K after GTA developer refused licences:
BOC Governor Says Canada Will Lean On Real Estate Because “We Need The Growth”:
Canadians are hunkering down and changing their shopping habits as they brace for higher prices on everyday essentials:
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