He also believes housing prices could crash by up to 50 per cent.
“It’s not unreasonable that we could see house prices fall by 30 to 50 per cent,” Vikram Mansharamani, a global equity investor and lecturer at Yale University, told MBN sister publication, CREW Thursday. “It will pinch the entire economy and have an impact on consumers. There is a material risk that it will spread across the country.”
Brokers, however, are quick to point out the differences between Canada’s mortgage regulation and the United States’ prior to its own bubble burst.
“The U.S. housing market grew out of greed and lack of government regulations which cause its bubble and finally succumbed to these 2 factors and burst,” Pete Capitulo of Verico
Riverside Mortgage Group wrote on MortgageBrokerNews.ca. “This is totally not the case with Canada.”