If there’s one hint that Justin Beaudoin is selling his home — a two-storey townhouse on the edge of Barrie, Ont., replete with fresh laminate floors and refurbished kitchen cabinets — it’s that the main floor is remarkably tidy.
For the past two years, pretty much anyone who owned a home could sell it for an outlandish asking price. Housing downturns are to be expected when interest rates rise, but the speed at which rates are climbing — with the central bank hiking rates at the fastest pace since 1998 — has economists and market-watchers projecting the largest real estate downturn in modern Canadian history.The Star asked Canada’s leading economists to outline their projections for the country’s
“Given the exceptional deterioration in affordability — first due to the rapid run-up in prices, then by the rapid rise in interest rates — as well as the sudden turn in sentiment around the market, it’s difficult to see anything other than a meaningful correction ahead for Canadian housing,” said Doug Porter, senior economist at BMO.
At CIBC, meanwhile, economists anticipate home prices to decline about 15 per cent by the end of the year. Still, the looming downturn in real estate would be bigger than any correction of the last four decades.
Since March, when the market peaked, national home prices have fallen 3.3 per cent while some Ontario cities have reported drops of 10 to 15 per cent.
Good. That insanity should have ended long ago.
The guy in the article who’s mad at the BoC bc he can’t sell his townhome for DOUBLE what he paid 2 YEARS AGO. 🙄🙄🙄 The markets needs a correction when this is the mindset. Also, please stop saying there’s a supply issue. The issue is this very kind of speculation.
Is Barrie North of Bloor or St. Clair?
Oh no! Better put interest rates back to zero. And print $100's of Billions in more cash.