Comments on: This Week’s Top Stories: Canada’s Banks Turn Bearish On Real Estate As Prices Fall https://betterdwelling.com/this-weeks-top-stories-canadas-banks-turn-bearish-on-real-estate-as-prices-fall/ Canada’s Fastest Growing Real Estate News Source Mon, 05 Sep 2022 20:17:09 +0000 hourly 1 By: Amjad Shaikh https://betterdwelling.com/this-weeks-top-stories-canadas-banks-turn-bearish-on-real-estate-as-prices-fall/#comment-85683 Mon, 05 Sep 2022 20:17:09 +0000 https://betterdwelling.com/?p=21797#comment-85683 No specific reasons given by TD and RBC, as to which factors would cause decline in real estate prices, other than the interest rate.
It’s believed that the rise in inflation, wages and material cost will push prices upward; similarly, the demand for owning/renting homes by more than 400k immigrants are also demand pull factors.

In short, it appears that the rising interest rate and tightening of monetary policy would curb demand to an ectent, however, the other factors, mentioned above, will not allow steep fall of home prives. Seems there would be moderate adjustment of home prives in urban areas.

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