Canadian Imperial Bank of Commerce is anticipating a 15% decline by the end of 2022.
“When the Bank of Canada raises interest rates, it’s aiming to slow economic growth by taking a bite out of activity in the interest-sensitive parts of the economy, and housing is high on the list of sectors that are exposed to the impact of higher rates,” said Avery Shenfeld, senior economist at CIBC.
Read more: GTA residential rent surges
BMO even ventured so far as to project a 20% drop by the middle of next year. This will accompany a decline of 23% in sales activity, mainly due to deceleration in Ontario and British Columbia.
“Given the exceptional deterioration in affordability – first due to the rapid run-up in prices, then by the rapid rise in interest rates – as well as the sudden turn in sentiment around the market, it’s difficult to see…