Canada’s largest bank has downgraded its outlook for the housing market and now forecasts a “historic correction,” worse than any national decline seen in this country in the past 40 years.has put the Bank of Canada on a course of aggressive hikes that will take its policy rate to restrictive levels by the fall, wrote RBC assistant chief economist Robert Hogue in the report that came out Friday.
The 42% drop in home sales from the peak in early 2021 will exceed the declines seen in the past four national downturns, Hogue said. In 1981-82 and again in 1989-1990 sales fell 33%; they fell 38% in 2008-09 and 20% in 2016-2018. RBC expects the Bank’s policy rate to reach 3.25% by October — “a big bite for borrowers to swallow that will spoil or delay homeownership plans for many buyers.”
But while RBC economists are predicting a “historic correction,” they do not see a collapse in the housing market.
Headline should read 'some areas of Canada...' the prairies are going to see a blip. The Laurentian Triangle and the GVA isn't 'Canada'.
JustinTrudeau distributed freemoney during pandemic to everyone & anyone via poorly judged schemes. Now bankofcanada is taking away freemoney & money you earn via interest rate hikes giving back to CanadianGovt & into Bankers pockets. SaveCanada PierrePoilievre
It's criminal mindset, first get you addicted then jack up price. bankofcanada & JustinTrudeau were aware of housing exceptional price rise in 2021, did nothing to tame, now suddenly let's tame runaway inflation & jack up interestrate & make venerable suffer. OntarioAuditor
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Housing busts take 2-3 years to bottom, this has barely started
12% drop from the peak.... historic? dramatic? worst in 40 years 🤣🤣? Oh pleeze
Real question. Is 15% to 29% drop in housing prices, peak to trough, a big deal if housing prices over last two years doubled?
About time.