The world’s biggest bond fund has a negative outlook for Canada’s housing market, projecting a marked decline over the next few years and slashing its holdings in the country, reports The Globe and Mail.

Ed Devlin, head of Canadian investing for Pimco, told the Financial Times he expects the residential market to fall more than 30 per cent over the next two to five years.

Devlin doesn't expect this decline to happen overnight, but he joins a long list of experts and organizations, from Deutsche Bank to the Organization for Economic Co-operation and Development, in raising red flags in regards to Canada's housing market.

Deutsche Bank finds that Canada is the world's most overvalued real estate market, while TD Bank believes the market is overvalued by about 10 per cent. Devlin's 30 per cent prediction goes beyond the smaller-scale fall projected by some top Canadian economists.

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