The oilpatch crash is expected to cool the housing market across Canada slightly, but the outlook for B.C. is rosier because of a projected arrival of 23,000 newcomers over the next two years, according to the fourth-quarter outlook released Monday by Canada’s housing agency.
But an economist warns that Canada, including Vancouver, could be on the verge of a 25- to 30-per-cent slump in housing prices if interest rates go up as expected next year.
The Canada and Mortgage Housing Corp. report said cheaper oil caused the real gross domestic product (GDP) to drop for two quarters in a row this year, but its effect on the economy was moderated by job gains and low interest rates.
The outlook for B.C. is better, thanks to a projected population growth, more consumer spending and a low dollar that will drive exports and attract U.S. tourists, the report said.
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