Property prices in Canada are set to fall as rising interest rates bring an end to a “speculative fever” in the housing market, the country’s banking regulator said on a podcast.
An extended run-up in home prices, readily available mortgages, and a propensity among Canadians to buy and flip homes have all fuelled the buying frenzy, Peter Routledge, head of the Office of the Superintendent of Financial Institutions, said on The Herle Burly podcast on Wednesday.
Higher rates are set to dampen that fever and lead to a slowdown in prices, he said. “In some markets, where you had really rapid increases in prices, you could see a fall of 10%, 20%,” Routledge said. # SANDI HALPERN # SOLD # LEASED # HIGHER INTEREST RATES# HOUSING MARKET # PRICES FALL
