Canada’s housing market headed for ‘historic correction,’ says RBC

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Canada’s largest bank has downgraded its outlook for the housing market and now forecasts a “historic correction,” worse than any national decline seen in this country in the past 40 years.

Soaring inflation has put the Bank of Canada on a course of aggressive hikes that will take its policy rate to restrictive levels by the fall, wrote RBC assistant chief economist Robert Hogue in the report that came out Friday.

“This will send more buyers to the sidelines, especially in British Columbia and Ontario where affordability is extremely stretched,” he said.

RBC now expects home sales

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