Alarm bells sounding from deputy governor Paul Beaudry

  • BOC sees higher chance of housing market correction
  • Housing market imbalances and high household debt levels have intensified in some respects thanks to pandemic
  • Sudden influx of investors into housing likely contributed to rapid price gains seen this year
  • Particularly worrisome that expectations of home prices increases could create disconnect between actual home prices and their more-fundamental levels
  • As immigration resumes, demand/supply imbalance could worsen
  • Pace of house prices has picked up again
  • Household insolvencies are at multi-year lows, few businesses are showing signs of financial stress

I could write 1000 words on housing in Canada but a picture says it all. This is what $1,080,000 will get you in Toronto.

Alarm bells sounding from deputy governor Paul Beaudry