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Home prices could sink 20% when 'speculative fever' breaks

BNN: "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 fueled 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 per cent, 20 per cent,” Routledge said."

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