Housing prices in Canada will fall 30 percent this year from their peak in February last year, predicts Oxford Economics. Prices are already down 14 percent, and in a worst case scenario—which is unlikely, Oxford Economics says—they could drop 48 percent.
“The seasonal pick-up in resale activity this spring will be a key litmus test in a recessionary environment,” said economists Tony Stillo, Michael Davenport, and Cassidy Rheaume in their report, according to the Financial Post.
“If distressed homeowners boost listings faster than sales, months of inventory will shift further to a buyers’ market and prices will fall even lower,” the report said….