Home prices in Canada have yet to bottom out, with a decline of 14 percent expected in spring 2023, a Royal Bank of Canada economist says.
Robert Hogue, RBC assistant chief economist, told the Toronto Star that the bank raised its previous prediction of 12 percent decline to 14 percent on Sept. 15, after the Bank of Canada raised a key rate by 0.75 percent to 3.25 percent on Sept. 7 in an effort to further dampen inflation.
Considering that this is the highest the central bank’s policy rate has been since April 2008, when it was 3.5 percent, just prior to the onset of the financial crisis, Hogue said this latest forecast is taking future hikes into consideration….