RBC chief says we could see prices drop 15 per cent

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The chief executive of the Royal Bank of Canada says that there could be a price drop of as much as 15 per cent when interest rates rise. But David McKay isn’t joining the list of doom-mongers; instead he says a correction would be “healthy” for Canada’s economy. The BoC recently made a rare statement on over-valuation of the housing market and put its figures somewhere between 10 and 30 per cent. McKay says that he doesn’t believe the story will end badly rather that an easing of the low supply-high demand-low rates triangle would be a good thing, especially for those trying to enter the market. Read the full story.
  • Angela Wong-Liao - Invis on 2014-12-22 10:59:52 AM

    I agree with Mr McKay, house pricing dropped is good for Canadians, especially first time home buyers.

  • Ron Butler on 2014-12-22 11:26:40 AM

    That is so funny, I wonder if all of Angela's clients who bought houses in the last 3 years think seeing their property values drop 15% is "good for Canadians" or just the Canadians who have not bought property recently.

  • Bob on 2014-12-22 12:05:42 PM

    I dont see how a price drop of 15% helps anyone owning a home in Canada. There will be a lot of people with negative equity who wont be afford to sell or refinance. A lot of pressure on the majority of home owners, & only benefits a smaller segment of 1st time buyers

  • Bob M on 2014-12-22 1:24:45 PM

    So if interest rates rise...forget about people's homes...what are we going to do when the government debt payments increase! Hey BoC, why don't we just blow this whole system up...We can't raise rates is what this is coming down to. Thank goodness for Stephen Harper trying to keep the Federal books from ever expanding deficit/debt. I live in Ontario and this liberal socialist regime is on a mission to ensure our financial society becomes completely dependent on THEM!

  • Faye Drope on 2014-12-22 3:31:18 PM

    Dear Bob M the system wasn't broke this Mr Harper and his gang mucked it. Do your homework. The liberals are the ones that had our country in fine shape when the conservatives took it over. They loosened lending. Lowered CMHC insurance premiums, extended amortizations to 40 years brought in no money down and on and on. This state of our economy and our housing market is all conservatives meddling.

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