Canadian Real Estate Association downgrades housing forecast after 20% price drop
Updated
Updated · Reuters · Apr 28
Canadian Real Estate Association downgrades housing forecast after 20% price drop
14 articles · Updated · Reuters · Apr 28
Home prices in Canada have fallen 20% since February 2022, with the latest forecast cut last week amid higher mortgage rates and an oil price shock.
The downturn is reducing consumer spending by over C$5,000 per household and hurting sentiment, despite a record stock market rally that mainly benefits the wealthiest Canadians.
Weaker housing wealth is straining Prime Minister Carney’s economic revival efforts, with GDP growth slowing to 1.7% in 2025 and the Bank of Canada expecting further declines in consumption’s contribution to growth.
As mortgage shocks hit, will Canada's economy avoid recession or follow Japan's 'lost decade' path?
With home values falling and stocks soaring, is Canada's middle class facing a permanent wealth reset?
Could Canada's record-high savings rate be the secret fuel for a surprisingly strong economic rebound?
Is the dream of homeownership now permanently out of reach for an entire Canadian generation?
Trapped between US trade threats and an energy crisis, can Canada forge true economic independence?
Can a new national wealth fund fix a housing crisis rooted in two decades of policy choices?