One of Canada’s leading banks projects that real estate in two of the country’s largest cities could lose up to 15 per cent of its value in the next two to three years.
According to TD Bank, prices for homes in Vancouver and Toronto will decline significantly in the coming months. The bank has warned real estate in both cities is overpriced and will soon see a correction, but a stable economy and low interest rates have provided enough support to prevent a catastrophic drop in prices.
The U.S. saw a similar peak and subsequent 30-per-cent drop in 2008 leading up to the global financial crisis.
