Robert Hogue, Senior Economist at RBC, spoke on BNN on how a housing downturn could impact the overall Canadian economy.
Home prices in Toronto skyrocketed 30.5% in March, a statistic that underscores just how hot housing markets in pockets of the country have been. Price gains in and around the Toronto region are at eye-watering levels, raising red flags about the stability of the market and prompting intervention by the Ontario government. Elsewhere, government intervention has contributed to take some pressure off the Vancouver market, although it still remains firmly in seller’s territory – a trend evident in close to 60% of markets across the country.
Housing-related expenditures now account for a record share of the overall economy and have become a key growth contributor. As housing activity looks increasingly unsustainable, how vulnerable is the Canadian economy to a housing downturn?
RBC Capital Markets Economist, Laura Cooper, has shared her observations in an economic report.