What would happen if the Canadian real estate market followed a similar path to the U.S. housing market, and what would that look like a year down the road?
The Financial Post answered that question in an article titled, “How low can they go? If Canadian prices follow U.S. trends, certain cities will experience a major slide in house prices.”
Using a calculation based on the rise and fall of U.S. housing prices, and applying those same numbers to prices in Canada the Financial Post determined it would “…mean that most Canadian cities are headed for a fall in housing prices, especially those out west.”
Using their formula, the average price of a Saskatoon home would fall to just shy of $170,000 by October 2009 from it’s peak of $310,386 in June of 2008.
Is this method of comparing markets reasonable, or is it more like asking, “What would happen if we all suffered from cancer symptoms?”
You decide, and please let me know what you think.
I’m always happy to answer your Saskatoon real estate questions.
All of my contact info is here. Please feel free to call or email.
Norm Fisher Royal LePage Vidorra