Housing prices uncertain with recession
Posted July 28, 2015 5:20 pm.
Last Updated July 28, 2015 5:21 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) – Vancouver home prices could soon drop by 30 per cent according to a new projection.
In his forecast economist David Madani points out house prices continue to rise relative to incomes.
Another expert says mortgage rates are at record lows, there is an affordability issue, and the recession could be a factor. “You can only cut interest rates so far when rates are already so low. So I think he’s correct in saying that a recession does make a downturn in housing prices more likely,” says economist with UBC’s Sauder School of Business Thomas Davidoff.
Davidoff says we’ve heard these kinds of warnings before.
“People have been definitively saying that we are in a bubble since well before I arrived in 2009 and most of the time they’ve been wrong.”
Davidoff says the significant influence of foreign buyers in our market leaves us open to volatility, bottom line, he says nothing is certain.
