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Canada Cuts Home-Price Outlook, Projecting Drop as Deep as 15%

  • Inflation ‘more persistent’ than expected, CMHC CEO says
  • Higher rates, years of price gains crushed affordability: RBC
Bloomberg business news
Canada Has a Housing Affordability Crisis: RBC

Canada’s national housing agency plans to revamp its forecasts to call for a drop of as much as 15% in home prices, as higher mortgage rates threaten to cause a protracted slump in real estate. 

Canada Mortgage & Housing Corp. said in July that national housing prices could slide 5% by mid-2023, compared with levels earlier this year. It’s now revising those projections to allow for a 10% to 15% decline, Chief Executive Officer Romy Bowers said in an interview Thursday at the Bloomberg Canadian Finance Conference.