RBC says it the country’s housing correction is likely to “deepen” in the coming months with resale activity and prices falling more than expected.
The bank now sees home resales falling nearly 23% this year and 15% next year, with the national benchmark price falling a total of 12% “from peak to trough” by the second quarter of 2023.
“This would also rank as the steepest correction of the past five national downturns,” wrote RBC economist Robert Hogue.
“We expect local outcomes to vary widely with the priciest, more interest-sensitive areas facing larger declines, and relatively affordable markets showing greater resilience.”
He called the current correction “historic,” adding that buyers in the high-priced markets of Ontario and B.C. are “especially sensitive” to interest rates and “will struggle the most in the…