The rapid cooldown in real estate threatens to worsen a global economic downturn and is emerging as a key variable for central bankers who want to tamp down inflation. Here is a direct video link.
Also, see The World’s Hottest Housing Markets Face a Painful Reset
In Australia and Canada — two of the world’s bubbliest markets — economists anticipate a notable crunch…
Variable-rate mortgages accounted for nearly 60% of all new [Canadian] home loans at the height of the country’s real estate frenzy earlier this year.
Of the roughly half a trillion Canadian dollars’ worth of variable mortgage debt outstanding, about a third have seen their monthly payments go up in line with the central bank’s benchmark rate, according to research from the National Bank of Canada. Combined with things like lines of credit and fixed-rate mortgages coming up for renewal, these rising interest payments could collectively shave 0.65% off Canadians’ collective disposable income over the next three years, the research shows.
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