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Capital Economics

The leading macroeconomic research consultancy

Canada Economics Weekly

Canada Economics Weekly

Housing correction only a matter of timing

While the recent strength of Canada's housing market has been astounding, the regional breakdown reveals that it has begun to fray at the edges. With house prices already declining in some smaller regions, it may only be a matter of timing before prices in other larger and much more overvalued markets begin to fall more sharply. We still believe that the housing market is overdue for a longer-term correction of as much as 25%.

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