Dec
01

Oil at $35 Would Trigger 26% Canada Home Price Drop, CMHC Says

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  • Results of stress testing assumes low oil price for 5 years
  • CMHC’s Siddall gives private presentation in New York

Oil at $35 a barrel for a period of five years would trigger a 26 percent collapse in Canadian home prices, according to stress tests run by Canada’s housing agency.

The results were part of a slide presentation Evan Siddall, chief executive officer at Canada Mortgage & Housing Corp., gave Monday to a private audience in New York. The “Stress tests – Financial impacts” slide included five scenarios, one of which was called “Oil Price Shock,” which also predicts the unemployment rate would peak at 12.5 percent. Spokesman Charles Sauriol said later in an e-mail the scenario assumes oil at $35 a barrel over five years. The “Base Case” scenario calls for housing prices to climb 9.1 percent and joblessness to peak at 6.6 percent…

Oil at $35 Would Trigger 26% Canada Home Price Drop, CMHC Says

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