Special to The Globe and Mail
“Looking ahead to the next five years, the stimulative conditions that have allowed exceptionally strong real house price growth over the past decade will no longer be in play: Interest rates remain near record lows with little downside potential while credit availability is being tightened by prudent new rules implemented by Canada Mortgage and Housing Corporation and other Canadian regulators.
It is exceptionally likely that real house prices will fall over the next five years. And if this should coincide with a low inflation environment, as I suspect it will, we will likely be looking at outright price declines, and potentially significant declines at that.”
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