12.03.2013 - Canadian house prices could fall 44pct with severe economic shock: Moody’s
A severe economic shock, such as the kind that hit Japan in the early 1990s and California and Nevada in 2006, could knock Canadian housing prices down by 44%, according to a formula devised by Moody’s Investors Service to rate securities linked to mortgages. Such a decline would be driven primarily by the phenomenal upswing in Canadian home prices over the past decade, Moody’s said. While house prices in Spain could plummet by a more severe 52%, Canada joins Spain, as well as the United Kingdom and Australia, in the ratings agency’s assessment of countries where growth in housing prices over the past 10 years has driven their values away from sustainable market fundamentals and into “overheated” territory...............................................Full Article: Source
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