266 King Street West.Benchmark house prices in Vancouver fell 3.3% from a year earlier. Xinhua News Agency, January 4, housing sales in Vancouver, Canada fell 51.8% in December compared with the same period last year.Please Visit: 266 King Street West to Get Your VVIP Registration Today!
If the economy goes down, there may be a sharp contraction similar to that in the 1990s, requiring long-term macro correction.
By April 2023, the average benchmark price of a home is expected to fall for 12 consecutive months to 30 per cent, followed by an average compound annual growth rate of 4.2 per cent for the following four years. House prices will fall by 15.8% in the five years to April 2027.
For example, based on the current benchmark average price of housing, the benchmark average price of a home will fall to 728200 (- $264700) by April 2023. At the same time, inflation and bond yields will reach their highest levels in 30 years.
If the economy goes up, according to RBC’s upside forecast, house prices will soar and will not be affected by the rise in interest rates.
The benchmark average price of housing is expected to rise 10.9% in April 2023 compared with the same period last year. Over the next four years, the average compound annual growth rate was 9.5%, and house prices rose by 61.7% in five years.
For example, based on the current benchmark average price of housing, the benchmark average price of a home fell to 978600 (+ $96200) by April 2023. By April 2027, the price of the house had fallen to 1.4069 million (+ $524469). At that time, house prices across Canada will be roughly equivalent to the current prices in Vancouver.
No matter what happens in the future, RBC’s recent economic reports have always spoken bluntly about the impact of rising house prices on the economy, and now put considerable weight on downside risks in economic forecasts.
High housing prices should indeed be adjusted, but at present we should pay more attention to the economic situation behind high housing prices to avoid the financial crisis.