In a note to clients Thursday, RBC Assistant Chief Economist Robert Hogue said he expects prices will continue to decline as the central bank increases the cost of borrowing, which RBC sees topping out half a percentage point above its earlier projections.
RBC has joined TD and Scotiabank in forecasting the terminal rate – essentially where a central bank ends its rate increase or decrease cycle – at four per cent. That’s well within so-called restrictive territory where rates constrain economic growth, with the central bank previously stating that anything above three per cent will put the brakes on output.
“The likelihood the Bank of Canada will take its policy rate deeper into restrictive territory by year-end is poised to keep buyers on the defensive in the coming months,” he said.
That all because of Trudiot massive and unwise spending
Not really a big call when there are signs some spots are already off 20%.
A 14% drop overall, and a 16% drop from the peak in Ontario, is a pretty modest decline relative to the surge in prices in recent years.
Yeah as if it was heat-free when the rates were at 0. Just 50% increase of house prices... nothing unusual. Ridiculous.
Most home owners these days.....
And...whats the problem? If ur over levered...to fuckinggg bad....
Wonder exactly WHO the RBC is 'warning'? Buyers, sellers, and money lenders are already very well aware of what's going on!
Is that not what the increase of interest rates supposed to do? Slow demand?
No they're not. They can easily tolerate another 3% overnight interest rate hikes by bankofcanada . Go for it Tiff. We've got your back.
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