Canadian home value set to plummet in next three years
Posted Feb 4, 2011 03:10:17 PM.
This article is more than 5 years old.
Canadian home values are slated to plummet in the next three years. The Capital Economics Report says we could be in for as much as a 25 per cent drop once the Bank of Canada begins lifting interest rates later this year.
The report finds that house prices have risen 5 and a half times as fast as income, leading homebuyers to take on gradually unbearable levels of debt.
David Madani with Capital Economics describes the forecasted drop as a market correction which will have far reaching effects.
