Canada’s housing market faces ‘historic correction’ that could see sales drop 42%, RBC says

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Canada’s largest bank predicts home prices could drop by more than 12% early next year and unit sales could drop 42% between early 2021 by end of next year, making it the worst slump since the early 1990s.

Canada’s housing market could be facing its biggest downturn in recent history, according to a new report from RBC.

“The economic landscape is rapidly becoming less hospitable for Canada’s housing market,” said Hogue. Already, the market has shown significant signs of cooling. According to the Canadian Real Estate Association , the market slowed for the third straight month in June while home prices posted their largest monthly decline on record.

“It’s a big bite for borrowers to swallow that will spoil or delay home ownership plans for many buyers.”The study forecasts that home sales in the two provinces, where home prices soared during the pandemic, will fall 45 per cent and 38 per cent respectively, in 2022 and 2023.

 

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Anyone unconcerned by this threat or those deriving pleasure from the thought of homeowners in peril likely has nothing! Following that assertion, ill leap to conclude they likely have no understanding of basic economics, thus, no idea that the coming crash will affect them most!

WHO COULD HAVE SEEN THIS COMING?

Good.

Needs to drop 100% and restart

Poll: Will the housing market crash due to soaring interest rates?

Can’t wait to buy a decent spread dirt cheap in West Vancouver! And change to use the Glory 🕳

Sales drop. Ok. And prices? I don’t care what kind of price correction is coming, it’s never going to undo the damage that has already been done. The big cities are now forever unaffordable.

Good

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