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.”
In Quebec, RBC sees home sales falling 16.8% by the end of 2022 and down 6.1% in 2023. Prices are expected to end 2022 7.5% higher than the year before and but then decline 5.1% in 2023.
financialpost Historic my “you know what” it’s getting back to normal. Mr national post editor where do you get your reporters. Send them back to school to learn fact finding.
financialpost thank you Trudeau
financialpost Prices in 416 have already dropped a minimum of 22%. This looks like a 35-40 % drop of rates stay at 6-7% for an extended period of time. Rates drive pricing.
financialpost Can’t wait to scoop a nice one up.
financialpost Where is that Minister of the middle class?
financialpost Congrats to all the doomsayers for finally getting it right after predicting it for 20 yrs. When the correction is over, millennials and Gen Z will be competing for home ownership and the market will heat up again.
financialpost That’s basically the downpayment of everyone who bought in the last two years. Great job, government.
financialpost If by correction you mean: -overpriced homes put on market by those who can’t afford mortgages. -banks forced to liquidate foreclosed properties to Blackrock -Canadians owning nothing and being happy about it. Then yes, a historic return to feudalism.
financialpost This isn’t really much of a correction. House prices went up by close to 25% 2021. 14 doesn’t touch that.
financialpost Good.
financialpost Agenda 2030 let them eat bug's. 🦗🦗🦗
financialpost Nice affordable housing Justin
financialpost The Trudeau effect in plain view .