Canada’s housing market continues to show strength overall, with a slowdown in a few urban centres, but it “may only be a matter of timing” before there’s a full-blown correction, warns an economist, reports Yahoo Finance.

Capital Economics economist David Madani, known for his bearish outlook on Canada’s housing sector, believes the market is overdue for a correction of as much as 25 per cent.

He says the recent softness in cities such as Halifax, Winnipeg and Victoria are just the beginning. Larger “overvalued markets” such as Toronto and Vancouver, are expected to follow.

While many economists are calling for the “soft landing” in Canada’s housing market, Madani forecasts something more severe.

“Overall, with house prices already declining in some smaller regions, it may only be a matter of timing then before prices in other larger and much more overvalued markets begin to fall more sharply,” he says in a new report.

“We still firmly believe that the housing market will ultimately experience a hard landing with prices falling by as much as 25 per cent.”

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