Forecasters predict housing slowdown in 2015 but still fear crash

Forecasters predict housing slowdown in 2015 but still fear crash

Forecasters predict housing slowdown in 2015 but still fear crash A poll of forecasters by Reuters shows a consensus that next year will see a slowdown in housing construction and prices but are still fearful of a market crash. Most of the 23 forecasters polled believe that house prices are higher than they should be. Nine say there is a higher risk of a crash than a year ago, the same number say the risk is the same, while 5 say it is lower. The analysts expect a price rise of 5.2 per cent in 2014, slowing to 2 per cent in 2015 and 2016; roughly in line with inflation. Housing starts are predicted to reduce to 181,000 in Q4 2015 compared to 190,000 in the last three months of this year. The household debt-to-income ratio is a concern for around half of the forecasters.
6 Comments
  • DB 2014-11-26 8:23:55 AM
    If all indications are correct, via the economic forecasts, there is potential for an economic recession via currency debasing by numerous countries. Europe and China are contracting so any kind of belt tightening or rate increases in North America shoots are dollars higher creating lower demand for goods and services. Thus lower growth. If we were running a full capacity and seeing inflation, rate increases would be justified IMO. I don't think so. Europe today is heading for more QE in the form of a 252 billion stimulus. China just reduced lending costs as their economy shrinks. See the point..........a market crash isn't going to happen because of rate increases, rather lack of work / job growth.
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  • PM 2014-11-26 9:08:48 AM
    ^ Agreed.
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  • JG 2014-11-26 9:47:29 AM
    Yet yesterday, CMHC predicted the property market is not at risk.

    My opinion is that none of them know for sure and the media doesn't help the cause by causing the general public to worry about what might or might not be.

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