Even bigger home price drops seen looming as interest rate forecasts rise
Canada's expected 20% price drop deepest among advanced economies except New Zealand
The higher expectations for interest rate hikes climb — and they are climbing — the bleaker the outlook for global housing markets gets.
Capital Economics has revised its forecast for the peak in interest rates for major developed markets upwards by 50 to 100 basis points, and now expects rates to peak at between 3 and 5 per cent.
Even higher rates will put more pressure on housing markets, and Capital now expects bigger price drops in some of the more vulnerable markets, including Canada.
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Canada's expected 20% price drop deepest among advanced economies except New Zealand
The higher expectations for interest rate hikes climb — and they are climbing — the bleaker the outlook for global housing markets gets.
Capital Economics has revised its forecast for the peak in interest rates for major developed markets upwards by 50 to 100 basis points, and now expects rates to peak at between 3 and 5 per cent.
Even higher rates will put more pressure on housing markets, and Capital now expects bigger price drops in some of the more vulnerable markets, including Canada.
.