UNION City Markham.Canadian house prices are at 40% risk of collapse. If one of the world’s leading forecasters is right, Canadian real estate prices may be in trouble.Please Visit: UNION City Markham to Get Your VVIP Registration Today!
The latest forecast from the Oxford Institute for Economics (Oxford Economics) shows that Canadian home prices will fall by 24% by mid-2024. Higher interest rates and anti-speculation policies are expected to take effect this autumn. If even these measures fail to stabilize house prices and prices rise further, Canadian house prices are expected to face a 40% collapse and trigger a financial crisis.
Oxford Institute of Economics believes that house prices will fall sharply, but will not fall back to 2020. They think house prices will fall by 24% from this fall and reach a bottom by mid-2024. Home prices have risen by 50 per cent since the Bank of Canada (BoC) cut interest rates. Even if house prices are partially revised, they are still expected to be 15% higher than in 2020.
Don’t expect house prices to rebound quickly after falling back. From 2025 to 2030, they think supply will exceed demand and the annual growth rate will remain below 1% for five years. This will enable incomes to catch up with house prices and restore affordability by mid-2028. The forecast is an ideal combination of falling prices and stagnation, minimizing the impact. If that happens, they don’t think there will be a recession or a major economic drag.
If Canadian house prices continue to soar, they expect a 40% collapse and a financial crisis.
Just two years ago, the Oxford Institute of Economics thought that house prices could not have fallen so much. But since house prices soared after 2020, house prices have been pushed to a high level. If prices continue to soar “out of control”, the correction will collapse. In this case, a 40 per cent price collapse could occur and could trigger a financial crisis. They now stress that this is unlikely to happen.
