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Construction crane at a site at 1 York St. where a new office tower and two condominium buildings will be built. Photographed March 3 2014.
Construction crane at a site at 1 York St. where a new office tower and two condominium buildings will be built. Photographed March 3 2014.
(Fred Lum/The Globe and Mail)

Pull in the claws, housing bears – no rate hikes yet

Here we go again. For what feels like the umpteenth time, someone with clout is calling for a big drop in Canadian house prices.

This week the culprit is Pimco, speculating that domestic house prices will drop 10 to 20 per cent in real terms over the next three to five years. The more heavyweights that join the chorus, the more international news organizations pile on, with the Financial Times the latest to report on the worries.