Some economists say Canada's housing market may now have hit bottom after the slowdown engineered by policy makers. Many believe these policies appear to have done the trick, with a soft landing rather than a crash.
The latest Canadian Real Estate Association report shows sales on the upswing in April for a second consecutive month.
Royal Bank of Canada senior economist Robert Hogue said, "The 3.6-per-cent month-over-month advance isn’t an ‘all-clear’ signal for the market but strongly suggests that the cyclical bottom has been reached.”
So, what comes next?
This is the stated opinion of Andres Carbacho-Burgos, lead housing economist at Moody's Analytics, which is the sister company of the credit rating agency: "With the direct and indirect effects of monetary tightening, house price appreciation will slow down in 2020, turn briefly negative in 2021, and only recover in the following years.”
Source: https://www.theglobeandmail.com/business/briefing/article-hitting-market-bottom-a-five-year-forecast-for-house-prices-in-3/?fbclid=IwAR24IPWE3yJzNP26RdQgYppVh1MqtL5T6_tK5FXqvIm-vN2k6bA3n971nG4
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