Canada risks housing-related recession if interest rate hikes get too aggressive

, senior Canada economist Stephen Brown noted the central bank seemed unfazed by a double-digit drop in home sales in May — the second consecutive such monthly drop — and that it was adopting an increasingly hawkish tone on inflation.

National home sales fell 12 per cent on a month-over-month basis in May, following a 14 per cent drop in April. While Brown suggested the declines would bring sales closer in-line to the pre-pandemic norm, the balancing of supply and demand gave him more reason for concern.Article content Home prices are already dropping, according to Capital Economics data, sliding 0.6 per cent month over month across the country. Toronto saw its prices fall even faster by over three per cent for the second month in a row in May.

financialpost Murdock pushing fear and uncertainty.

financialpost There's no excuse to raise interest rates. The incompetence of this Government is off the wall. How does it help any Canadian when big banks are making billions more in profits and Canadians are forced into bankruptcy and poverty. Something very wrong folks. Fire them all.

financialpost I guess someone pulled out the crystal ball again 😼

financialpost The idea that Macklem can correograph a soft landing is fantasy. No central bank ever has. It's far better for the psychology of the nation to get out a few full 1% hikes, let adjustments begin, than to embed a chronic state of worry by slowly raising rates.

financialpost Canada has housing inflation because interest rates are too low. Can't have it both ways if you bought above your means.

financialpost Amoungst other things.

financialpost Too bad. These people take their wealth transfer and they over indulge ....let them eat cake. Not my problem.

financialpost Unfortunately, I recently spoke to a realtor who is waiting for the market to crash to buy up properties. We would not be here without fiscal incompetence whether Canada, US,UK etc. Those with equity in their homes will drive the price down cashing in their chips.

financialpost you guys are the bestest cheerleaders for the oligarchs ever... this is causing massive poverty I guess we are moving on without you - en masse

financialpost Good. People were buying houses near me 100-200K over asking within a few days of it going on the market, thus helping to inflate the bubble. Those people are going to learn an expensive and well-deserved lesson.

financialpost We put billions in the market during the pandemic. Banque of Canada has the responsibility to make the cash available difficult to get. We don't have another option for the moment.

financialpost Fantastic. Housing needs to get nuked and stay flat for decades. Should have never been a source of wealth and investment. Harper, Trudeau kept the boneheaded policy in place that inflated the bubble

financialpost Inflation bad? But not house price inflation I get it now...

financialpost Thanks 🙄🤦🏼‍♀️bankofcanada Macklem liberal_party JustinTrudeau cafreeland for bring CA to a place where if you were able to own a house, you are now going to lose it. TrudeauIsDestroyingCanada cndpoli

financialpost It's Putin's fault.

financialpost House prices should drop by 40%

financialpost Meh. Trudeau will blame it on Harper and keeping us “safe”

financialpost Homes have gone up almost 100% in just over three years in Niagara area.They were bought by investors at an insane rate. A housing related recession would be a blessing ,pricing can return to pre covid levels. The investors will be having the losses, so normal people can purchase

financialpost Maybe they shouldve just avoided the rollercoaster all together by not printing so much money.

financialpost Kinda the point. It’s a disgrace that Canadians live in government created poverty. We spend all our income on housing and taxes. Completely unsustainable.

financialpost bring it

financialpost Rent caps plus punitive taxation on rental, income and investment properties along with punitive taxation on empty homes. Watch the cost of houses crash.

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Housing prices in Canada could fall 15 per cent by Dec. 2023 after Bank of Canada rate hikes: reportAs the Bank of Canada continues to hike rates in order to curb inflation, housing prices in Canada could fall 15 per cent from its peak by the end of next year, a new report from Desjardins says. Not enough… Anyone that bought a house past 2 years will have a hard time renewing their mortgage when the value of house drops lower than what they owe its already down 15% form its highs in many places!
Source: CTVNews - 🏆 1. / 99 Read more »

Canada risks housing-related recession if interest rate hikes get too aggressiveBank of Canada\u0027s increasingly hawkish tone on inflation could potentially set home sales into a tailspin, Capital Economics says. Learn more financialpost Where have you been....1970? financialpost Good. This is what happens when the public is coerced by “economists” who are greedy pigs. You all HELOC’ed into this mess. Made the bed now lay in it. financialpost Written by a real estate agent….
Source: VancouverSun - 🏆 49. / 61 Read more »