Slow growth to clip housing prices by 5%
Canadian home prices are likely to drop 5% in the first half of 2012 as the economy slows and could slide as much as 10% if the unemployment rate rises above 8%, economists at Bank of America Merrill Lynch said.
Ryan Bohren and Sheryl King warn the market is overvalued and flooded with supply.
The economists have taken a bearish stance on the real estate market before, warning of a possible 15% correction to the Toronto condominium market in an October report.
In their 2012 outlook for housing released Friday, Mr. Bohren and Ms. King noted that while Canada is somewhat shielded from the situation overseas, it is not immune to the European turmoil and the economic fallout here could worsen if unemployment creeps up to 8%.
Read the full article here.
Canadian home prices are likely to drop 5% in the first half of 2012 as the economy slows and could slide as much as 10% if the unemployment rate rises above 8%, economists at Bank of America Merrill Lynch said.
Ryan Bohren and Sheryl King warn the market is overvalued and flooded with supply.
The economists have taken a bearish stance on the real estate market before, warning of a possible 15% correction to the Toronto condominium market in an October report.
In their 2012 outlook for housing released Friday, Mr. Bohren and Ms. King noted that while Canada is somewhat shielded from the situation overseas, it is not immune to the European turmoil and the economic fallout here could worsen if unemployment creeps up to 8%.
Read the full article here.