Housing Predictions Gone Wrong
Saturday Apr 11th, 2015
IT'S NOT JUST YOU
Almost Every Housing Prediction Was Wrong
For the last six years, Canadians have been plagued by constant predictions of a housing crash coupled with dire warnings that homes are overvalued by 20% to 35% - and yet, year after year housing prices keep going up, as is shown below.
Take last year, when prices increased by 6%, despite the Bank of Canada forecasting a possible 30% market correction. Or go back to 2010 when prices increased by 6.8%, despite the Economist predicting a potential 25% correction. All of this is enough to give anyone forecast fatigue - but homeowners in it for the long haul really won't be impacted by the last few years of rapid appreciation or an impending correction. Instead, just focus on prudently paying off your mortgage.