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Forex: Canadian Housing bubble bursting? – Capital Economics

By FXstreet.com,  September 18, 2012, 02:31:00 AM EDT

FXstreet.com (Barcelona) - The team at Capital Economics have had a look at the recent slump in Canadian home sales and believe it may suggest that a housing correction is underway.

They write, "Assuming that sales continue to trend lower over the remainder of this year, then the typical lag relationship between sales and prices indicates that house prices will eventually follow suit early next year."

They finish by maintaining their belief that house prices will decline by 25% over the next year or two.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Forex and Currencies

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