Canada's 'V' shape housing recovery

Housing investment has rebounded close to historical highs, since the sharp declines during the global financial crisis. Unlike in other countries, this 'V' shape recovery was due to a stable banking sector, solid mortgage credit growth and the good fortune of higher commodity prices. This better past performance, however, is not an indication of future performance. We predict a global economic slowdown, a drop back in commodity prices and falling house prices will led to substantial declines in investment later this year and next.

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